Taming the Stock Market – Analysis of Recent Transactions

Taming the Stock Market - Analysis of Recent Transactions

For some unknown reason, many traders find working in the stock market more difficult than Forex. Perhaps the fact that you need to analyze a larger amount of information, and in general, the “foundation” strongly affects the course of the charts. Be that as it may, today’s small report will dispel myths about the complexity of working with stocks.

The good thing about the stock market is that sometimes the potential for earnings is higher than on Forex. Especially during the periods of release of quarterly reports, due to high volatility, you can earn in tight intervals of $ 2- $ 3 from each security.

The nuances of working in the stock market are discussed in more detail at a special course, I will post a link for recording below. The trading strategy is based on graphical analysis, so it will not become obsolete over time.

Long position in Blackstone Group

Here we have one of the simplest situations:

  • after a strong growth, the bulls took a break. Impulsive movements never last long;
  • got good resistance around $ 39.5 per share;
  • On April 22, the resistance was broken through, and then tested from above. A short position was opened when the chart was fixed behind the level. An additional argument in favor of buying is a surge in volumes upon breakdown of resistance.

Unfortunately, the deal didn’t work out. There was a slight upward movement, but no profit was recorded on the census of the nearest high, a stronger movement was expected. The result is a loss of $ 216.80.

Las Vegas Sands Sales

Justification of the transaction on points:

  • after the release of the quarterly report, a large seller appeared (this is evident from the increased volumes);
  • after a sharp fall, a slight correction took place and the stock entered a phase of consolidation;
  • there was not enough strength to consolidate the resistance;
  • then the fall continued and we got an entry point when census Low of the previous day and fixing the chart below this level.

This deal also resulted in a loss. The loss was $ 176.00.

Trade paper Union Pacific Group

Trade paper Union Pacific Group

For this action, the entry point is also nothing supernatural:

  • On April 22, the market opened at a historic high;
  • instead of fixing profit, we observe further growth, and even against the background of increasing volumes. That is, large players, instead of fixing profits on long positions, buy additional shares. There is confidence that growth will continue;
  • the entry point was obtained after a retest from above the broken resistance level.

This idea worked out and brought in a profit of $ 256. Completely blocked one of the previously received stops and partially the second.

Zoom Video Communications

This stock has recently gone public, which means that it will not be actively shortcut. Such securities often offer good buying opportunities. The situation as of April 22nd was as follows:

  • there was strong resistance at around $ 66.00 per share;
  • the resistance was eventually broken through and its retest took place;
  • the decline in the chart did not stop there and for a short while the security returned to the area below $ 66.00;
  • it was a fraudulent movement, after a couple of candles the stock resumed its growth. At that moment, it was worth concluding a buy deal, which was done. The ratio of stop to expected take profit at that moment was at the level of 1 to 10-20, never miss such deals.

In just 10-15 minutes, the deal worked out and the profit on it was $ 1005.95. That is, by the end of the day we are already in positive territory, both stops that have worked earlier are covered with a large margin.

Cadence Design Systems

Moving on to the next day, now by April 23rd and starting with the CDNS promotion:

  • opened at a historic high, and even with a gap. Knowing the property of gaps in the chart to close, we keep in mind one argument in favor of a downward movement;
  • on M5, you can see how quickly buyers fix a profit. This manifests itself in the form of a sharp downward movement with increasing volumes;
  • a small upward correction is seen as a great opportunity for short positions to earn around $ 1.50 per share. The stop is about 10-15 times lower.

Conclusion

None of the trades shown are complex. In fact, from the tools, only levels, VSA basics, a little “foundation” and an understanding of how the crowd behaves were used. This is enough for profitable trading.

Do not be surprised at losses, losing money by stop is the norm in trading. The main thing is that the profit on other positions consistently exceeds the losses. Sometimes it happens that you get a series of 2-3 small stops, but if you follow the TS rules, the profit will definitely compensate for the lost money.