Sometimes the market bring us amazing opportunities

2024年11月10日

Dollar Tree DLTR is bringing us an historical buy opportunity.

The $60 zone has been a major support since 2016 and now we have tested it twice. When this happens there are 2 scenarios:

1. A very big rally demonstrating that this support level is still strong (+40% minimum opportunity).

2. A fast break downwards facing a very bad situation and a continuation of the bearish situation.


How to Trade in this situation?

There is a simple strategy to handle the risk in this situation where a win is almost sure.

If you simply expect 100% of the position to return a 40%, you can be stuck here for a while and also lose your 5% as a Stop Loss.

Try this:

All positions have a 5% stop loss.

50% take profits at 5%
50% take profits at 40%

This way, with a very very high probability your 1st half will make enough money (5%) to cover the Stop of the live position.

So, you are in a risk free trade probably in just some days.

Worst case?

You keep losing a 5%!



Want more trades with great risk return?

Feel free to follow for daily trades! If you are still reading, thank you :)

2024年11月14日

交易進行

The first Take profits has been hit, so I have now a risk free trade to enjoy the upside.

I'll use trailing stop to lock in profits as soon as it makes sense. For now, 5% earned.

2024年12月9日

註釋

The opportunity is working fine, you could also split the current position into 2 different take profits.