[caption id="attachment_2604" align="alignright" width="150" caption="Photo by Hythe Eye"][/caption]
End July and beginning of August has been a good run for stocks. It is also the biggest win I ever had. This was due to the fact that I went for the “jugular” as suggested by George Soros (see this post, it was mentioned by Stanley Druckenmiller, “Soros has taught me that when you have tremendous conviction on a trade, you have to go for the jugular.”). Seeing the strong trend, I leverage 3 times of my capital to increase my profits. The stocks began to slow and retrace after the first week of August till now.
Number of Price Resistance Broken
So what have I learnt this month? In a good run like this, there are bound to be many price resistance breakthroughs. A reliable entry would be the first, second or the most, third, breakthrough in price resistance. Anything more than that would mean you are very susceptible to enter near the peak of the run, and suffer a loss when price retraces. Read more...