Order
Now
Return
Home
Home
Business
Digital
Economy
Sign
In
Disclaimer
Training
Center
FAQ
What's
New
Contact
Us
 
 



-------------------------------------------------------
My Playbook
-------------------------------------------------------



Up Cycle                    Down Cycle
 






Whentobuy.com provides educational material on investing in range bound (also known as channeling, rolling, consolidating) stocks. Range bound stocks are stocks that are neither trending up nor trending down. They are moving sideways in a pattern that shows a definite low (support) and high (resistance) for a specific period of time. There are many different investment strategies that are available. Range bound stocks is only one investment strategy.






Our playbook provides information detailing different order types and the terms that may be used when using the range bound investing strategy. Information for the novice or experienced trader will be found inside.

Using any investing strategy there are at least two universal attributes that you should follow before investing your money. They are:


  • Always compute your potential risk, reward and breakeven dollar amount for every trade.


  • Always understand how to place orders to buy and how to get out of your trade.

There are two different methods you may use to exit trades. The first method uses a Trailing Stop Loss order to follow the upward or downward price movement. The second method is more conservative. This method “boxes” your buy price with a Trailing Stop Loss and a Sell Limit order at 80% of the resistance level. Your broker may refer to this as a boxed price or simply a conditional trade. Not all brokers allow conditional trades, therefore, you must talk to your broker to determine if a conditional trades are allowed and how they process conditional orders.

As with all trading methodologies there is a different risk, reward, and breakeven point for each method. It is up to you to decide whether to be conservative or aggressive!

Examples for stocks that are cycling Up and stocks that are cycling Down are presented along with charts and examples.






Whentobuy.com and this newsletter are provided for educational purposes only. No statement in the documents should be construed as a recommendation to buy or sell a security or to provide investment advice. It is possible at this or some subsequent time, the editors or staff of whentobuy.com may own, buy or sell securities discussed. All investors should consult a qualified professional before trading in any security. Before trading stocks or options you should understand the risks. In addition, anytime a stock or option is purchased or sold, transaction costs including brokerage fees are at risk. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy and completeness.


Back



| Up Cycle | Down Cycle |

| Weekly Research | My Playbook |
| Order Now | Return Home | Home Business | Digital Economy | Sign In | Disclaimer | Training Center | FAQ | What's New | Contact Us |
 
 



Copyright © 2007, Technology Solutions, Inc.. All rights reserved.