Case Study of a Great Trade
There are moments when the market offers you fabulous opportunities to make money quickly. But you need to combine four key things to find them. Murray shows you what those four things are using a case study of two great trades in De Grey Mining [ASX:DEG] that members of his Retirement Trader service had the opportunity to benefit from.
Following on from the crash course on trading stocks last week I thought I would show you a case study of a trade in action in my service Retirement Trader.
We had a couple of trades in De Grey Mining [ASX:DEG] over the last couple of years and they both worked out beautifully.
The takeover bid by Northern Star Resources [ASX:NST] saw De Grey fly higher this week to its current price of $1.90.
After buying the stock under $1.00 in August 2022, I sent another buy alert just a couple of months ago at $1.30.
Both entries into the stock used the same methods. The positions were never far out of the money and they both hit their initial targets within a couple of months.
So how did we do it?
I show you everything you need to know in the video below.
By combining analysis of wave structure, trends, distributions, and candles (all explained in the video) I was able to zero in on moments to enter the stock just before it blasted higher.
The theory is based on understanding how traders are positioned and where their stop losses are.
It is also based on understanding how trends develop. With periods of trending higher broken up by periods of consolidation or correction.
When you know how momentum changes and can find areas where reversals often occur, you can combine all of the above into a strategy designed for a high probability of success.
It isn’t rocket science. It is just a bit of logic combined with plenty of observation.
If you enjoy the video then be sure to check out a document I put together that will teach you the six key lessons you need to know to become a consistently profitable investor.
I’ve put together insights from my 30+ years of trading that will help you navigate stockmarket investing.
I believe that the key to high returns without stress, is knowing you can survive any market conditions. To do that you need a risk management process that handles immense volatility.
I put this into action in my service Retirement Trader.
You can learn more about my approach by clicking here to get access to 30 years of trading knowledge.
Regards,
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Murray Dawes,
Editor, Retirement Trader and Fat Tail Microcaps
All advice is general advice and has not taken into account your personal circumstances.
Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.
Murray Dawes is our resident expert trader and portfolio manager. He is a former Sydney Futures Exchange floor trader who went on to design custom trading systems and strategies for ultra-wealthy clients (including one of Australia’s richest families). Today, his mission is to help ordinary Aussie investors make profitable investments, while expertly managing risk.
He uses his proprietary system for his more conversative and longer-term-focused service Retirement Trader…and then applies the same system to the ultra-speculative end of the Australian market in Fat Tail Microcaps (this service is strictly limited and via invitation only).
