Several trade opportunities have opened up this week. Today we will go over one trade I consider to be quite safe. The company in question is Twitter. TWTR is one of the biggest social media platforms in the world. Recently being “revived” due to President Trump, bringing activity back to the platform.
The chart is quite clean. Over time it has created a triangle, recently being confirmed by the third touch on the support line. Considering how clean the support line is, the likelihood of this trade playing out is quite big. Vice-versa, should the support break, chances are the trade will be invalid. Since the price is sitting at support, we can put the stop loss right under the support, minimizing risk.
This is a trade I will participate in. The most important part of the trade is the stop-loss. The goal is not necessarily to win on each trade, but rather to lose the least amount the times you lose on a trade. Remember Buffets no. 1 rule “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1″
Potential gain: 50%
Potential risk: 4%