I got an fb chat message from a friend.
An inquiry on trading MBT
My reply:
I can give you my opinion po. I am not following mbt since it does not fit into my system of investing/trading. Whether I have a stock to trade or not, either way there's only 3 ways a stock can go, Up,Down and Sideways...
If I have to trade mbt, I will buy at this price given that it's nearer to psyc resistance at 80 than the support level at 71.
In daily trading, speed of transaction is a must...speaking this way, trading near 80 is more opportunistic than waiting near 71. My action to take will be biased according to what I see only on the chart...I have yet to see really the real price action of mbt and some F.A. numbers to check. My trade however will be buy below 8.0 (and that means at this current price).
Resistance: 82 (you can sell before the price reaches this level)
Sell: when price goes near to 77. (accepting loss when it is still bearable )
Probabilities:
winning- 78.25 to 82.0 is 4.7%
losing- 78.25 to 77 is 1.6%
You can clearly define the probability in the winning trades has something to offer more gains than the consequence in the losing trade. If it does reaches 77, you can sell then post your gtc buy at 71. In this plan, you did grab the probability of it going up than down to 71.
Pros: Index is at work to retest previous highs.. mbt should follow suit
caveat
The day after: RESULT
My reply:
I can give you my opinion po. I am not following mbt since it does not fit into my system of investing/trading. Whether I have a stock to trade or not, either way there's only 3 ways a stock can go, Up,Down and Sideways...
If I have to trade mbt, I will buy at this price given that it's nearer to psyc resistance at 80 than the support level at 71.
In daily trading, speed of transaction is a must...speaking this way, trading near 80 is more opportunistic than waiting near 71. My action to take will be biased according to what I see only on the chart...I have yet to see really the real price action of mbt and some F.A. numbers to check. My trade however will be buy below 8.0 (and that means at this current price).
Resistance: 82 (you can sell before the price reaches this level)
Sell: when price goes near to 77. (accepting loss when it is still bearable )
Probabilities:
winning- 78.25 to 82.0 is 4.7%
losing- 78.25 to 77 is 1.6%
You can clearly define the probability in the winning trades has something to offer more gains than the consequence in the losing trade. If it does reaches 77, you can sell then post your gtc buy at 71. In this plan, you did grab the probability of it going up than down to 71.
Pros: Index is at work to retest previous highs.. mbt should follow suit
caveat
The day after: RESULT
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