$CRWD is forming a negative divergence on the monthly chart and has reached 161.8% of wave A to complete wave B. The stock is likely to see a large markdown in Super Cycle wave 2.
* My conclusions are a result of the technical analysis methods described in the education section.
$CRWD
is trading in a Grand Cycle wave
B
towards its Super Cycle
2
target of
$215-
.
Looking closer,
$CRWD
is in Minor Cycle wave
5
within Major wave
C
.
The current status is
STR
.
1) NO FOMO - There will always be more opportunity.
2) Select the longest available expiry - Learn about risk.
3) ABC - Always be Closin' - Take gains, don't be greedy.
4) Always set stops - NO FOMO!
5) Never risk too much - Mitigate Risk!
1) NO FOMO - There will always be more opportunity.
2) Select the longest available expiry - Learn about risk.
3) ABC - Always be Closin' - Take gains, don't be greedy.
4) Always set stops - NO FOMO!
5) Never risk too much - Mitigate Risk!
$CRWD is forming a negative divergence on the monthly chart and has reached 161.8% of wave A to complete wave B. The stock is likely to see a large markdown in Super Cycle wave 2.
No one knows the future. The best thing we can do is be prepared for the possibilities.
Understanding this allows you to be patient and ONLY enter into high probability trades.
*Trading is risky and can have life altering consequences. I am sharing my own personal knowledge, training, & experience using technical analysis for trading and investing in stocks. These are my strategies but NOT FINANCIAL ADVICE. Remember the purpose of this website is to inspire you to learn about technical analysis and create a strategy that works for you!
1) NO FOMO (fear of missing out) - We are our own worst enemy. NO FOMO is easy to say yet difficult to apply. Emotions drive us, motivate us, and make us who we are. The best way to overcome FOMO is to have a strategy and stick to it no matter what! Let the system make the choices so you don't have to. You can always make adjustments to your system after you collect enough data, just stick to the rules!
2) Position Size - position size is an important factor in mitigating risk. Reducing or adding to a position size should be in correlation with the level of risk. You should always have a max amount per trade in your strategy. Some best practices are no more than 2-10% of your buying power depending on your risk tolerance. Remember that if you risk 80% of your buying power and lose 50% of it then your portfolio will need to grow over 65% just to get back to break even. If you work hard enough & complete enough studies for yourself, you should have discovered plenty of opportunities to spread your equity around and mitigate risk.
3) Setting Stop Loss Orders - FOMO will make you crazy about setting stop losses. If you don't set stop losses, you are setting yourself up for failure. Rules are important. Every trade should have a stop loss open to protect your capital. Some best practices include placing limit orders just below key areas of support, setting a max % loss as a stop loss trigger, or utilizing features like trailing stop loss. Trailing stops are my personal favorite type of stop as it moves with the underlying price. For example, If you buy XYZ stock at $100 with a trailing stop loss trigger at -$10 and then the stock rises to $120 and then pulls back to $105, your stop loss would have triggered at $110 and you can reassess whether you want to re-enter back into the trade/investment at a lower price or not. Learning how to balance your stops is important because you don't want to get stopped out of a good trade and you also don't want to not get stopped out on a bad trade. Identifying how "tight" or "loose" your stops are will depend on how you trade and level o risk.
4) Options - Options are a wonderful thing and I pretty much only trade options. The caveat is that trading options is much riskier than trading shares because you're not confined to any sort of time metric. Options value decay. Most people don't understand the difference between the intrinsic and extrinsic value of option contracts. One day soon I will create an options education section but for now I recommend anyone who wants to trade options to learn everything about them before entering into any serious trade. The most important thing to know is to STAY AWAY FROM 0DTE expiries and any short term expiry in general. They are super high risk and you can lose 100% of your investment. Some best practices include only trading the farthest expiry weekly (if available) for swing trades & leaps for long trades. With options you must always give your trade enough time for you to be right. For example if you identify a pattern that you believe will complete within 2-4 weeks then you may want to look at least 8 weeks out for expiry. This allows enough time for you to be right while leaving plenty of "extrinsic value" left on the premiums of your contracts. In other words, there is still plenty of time on the clock so your contracts that went up in value went up a lot more because you have a lot of time remaining!
5) Taking Gains - ABC, always be closin'... I live by this mentality. Most early traders have a hard time exiting trades mainly because of FOMO but if you manage your position correctly, you should be able to lock in gains while reducing your exposure to risk. Sometimes a strategy includes trading a security several times in consolidation to reduce overall costs while growing a larger position size in anticipation of another price markup in the future. This is a very popular growth strategy for early stage traders seeking to grow their small capital. It allows the trader to make long investments without using up their capital since they can go long using realized gains from their swing trades while price consolidates.
The bottom line is you should always be taking gains and not FOMO. Every trader and trade is different but when your up 10% to 100%, whatever you decide, set a place to take your principle and maybe even some extra gains off the table. When price approaches key levels of resistance or near pivots within an identified pattern are also best practices when to take gains. Every time is different and reducing your exposure to risk is important to protecting your capital!