May 17 2007
Decided to lock-in profit and ring the register minutes ago on Google Inc.’s (Nasdaq: GOOG, stock) stock option after a four-days ride on the wave. Remember I said Google has been trading in the tight range of the support and resistance level or between $ 461 and $ 475 per share? You can read it here at YAHOO’s Loss is GOOGLE’s Gain – Time to Make Money. This is an example of how you can make money based on merely support and resistance level, though not every stock will present such opportunity to you. You just need to find one and get yourself close to it.
By getting close, I meant eat, sleep and dream of it. For this trade, I wasn’t rely on other technical indicators – just support and resistance level though I’ve to admit that it’s not easy to make money scalping Google’s stock. You need to make sure the the stock really trade within resistance-support range and not a false-alarm. How to ensure that – simply by observing its’ trading price range for a period of time.
How long have I been observing this pattern? Since it gapped up on Oct 23, 2007 – open up the chart and go figure. Sometime you don’t really have to study the thousands of stocks out there in the New York Stocks Exchange (NYSE) or Nasdaq, it’s just too tiring and time-consuming. But you’ve to do the hard work the very first time to identify the stock which you like and you believe you know its’ business. From there onwards, just monitor, study and dream about it. In no time the stock’s “behavior” will be at your finger’s tip and before you know it, voila, you’re making money out of it again and agian. But be warned that investing is always a risky business, so if you’re not ready to take a loss and able to go on with your life thereafter, please don’t trade or invest.
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May 17th, 2007 by financetwitter
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Comments
hello seekingworldlywisdom,
you’re right, none of my option trading method comply with the benjamin graham and warren buffett’s methodology but that doesn’t stop me from applying dual-methods, each for option trading and stocks investing respectively 😉
i’m still holding some shares which are in profitable position but i stubbornly do not wish to dispose it at the moment …
on the other side, i can’t just see opportunity to make money using option past by me without me taking any action to grab it … as a trader, i need to make some money either trading short-term or medium-term to survive …
yes, i realize investing is a marathon and there’s nothing wrong to adopt both strategy at the same time – investing and trading …
cheers …
All your words say: You do not know which company will ‘behave’ like this, when they will ‘behave’ like this and how long they will ‘behave’ like this. You have violated everything Benjamin Graham and Warren Buffett said.
Investing is most intelligent when it is most business like – Ben Graham.
Investing is a marathon not a sprint.