What makes a better trader?

Learning to Trade is Hard...So what makes a Better Trader?

2 weeks ago I received a chat message from one, who was aspiring to become a trader. I encouraged him to start learning. And he started getting overjoyed with Bitcoins and the big possibility of gains he can possibly have. Yesterday he sent me another message saying:

Trading Field is like a dream that will never come true...wasted my 16 years on education...not able to devote time...I don't want to trade stocks.

Hello Jerome! Please have a look, what I created.

And I want to let you know something,
Yes, I am interested in this field of trading, as very interested, but I am struggling with learning because this field takes time and dedication, It definitely should be because it is a different field, a lot of competition out there, it seems like competing with them is a lot difficult.

I must say that the trading field is like a dream that will never come true,
because there is my family who depend on me, I have already wasted my 16 years on education, now my father is retired I am married too. so there are lot of responsibilities on me, i am not able to devote time to this field that's why i don't want to trade stocks, i heard people lose money there so i am not even able to take risks right now because i know that I will lose. because I haven't learned much.

But yes, I understand a lot of things in trading and now I can write some content. and able to do social media marketing in this field
So that is what, I wanted to share with you.
.

And please watch this video and let me know how it is.

Thank you very much

Cheers.

He created the a video out of the context I told him that Learning to Trade is Hard.
And here is his entry:

Learning to trade is hard...

So what makes a Better Trader?

Someone who had grit and determination
Someone who focuses on Long Term and isn't focus on the short term wins.

Learning to trade is hard
From Technical Charting to Fundamental Analysis of Stock
To finding a Guru or Forum that you can follow in order not to lose money.

But what if you could learn trading the easy way,

Without headache and without losing your hard earned money?

NOW YOU CAN WITH...
ACCELOTRADE.COM
(Peek. Practice. Play)

Just Peek, Practice and Play with other traders,
Artificial Intelligence or your invited guests
in a chess-like trading game.

Simple! NO books, No Guru, No forum and No headaches.

Start Accelotrading Today
Be a better trader tomorrow.

************ MY RESPONSE TO HIS MESSAGE****************

Hello my friend,

I like the video that you made. I will be commenting on each of those entries, but before doing so, I'd like to send you this message first, so that way you can be clarified.

So what makes a better trader?

This question is not answered on the next 2 lines you made.

You answered:

Someone who has grit and determination

Someone who focuses on Long Term and isn't focus on the short term wins

Determination is not enough to be a good trader. Time frame is not enough either.

If you think it's hard, you are right. And If you think it's simple you are also right.

Either way, you are right. If you think that education is a waste of time then it is. Because you made a decision to be what it is. And if you think you have no time to devote on something, then yes indeed. That is because you already made up also your mind to be that way.

So what makes a good trader?

What makes a good trader is his mind set.

Trading is an art and passion which can only be delivered with dedication and discipline. Dedication and Discipline happens only to guys who's mental toughness exceeds more than his feelings and emotions.

Trading is also finding your domain  of comfort. He has to choose which timeframe he is able to make a wise decision without being influenced by fear or greed or outside influence. Some are comfortable of pulling in and out at 1min trade, others are comfortable by the hour, others are pretty good at swinging on days but there are those wise guys too who excel in amassing multiple baggers of homeruns in long hauls. You have to choose which one. You cannot be expert on all time frames. If you have work on the side, you can maintain your work on the side and just use trading as a means to amass wealth in long hauls. 

How do you do such thing when you are tied with current work and duties that keep you busy? 

The Criteria:

It is simple.

You concentrate on 4 fundamental Criteria of choosing a company to place your money:

1. a company that emerge to leadership
2. a company with good management
3. a company with increasing revenue and sales without debts
4. a company with product that flies 

When you have these fundamentals, the technical chart is just your reference where you can possibly best position yourself. That is why I do not go with Forex or Bitcoins because they do not operate by fundamentals. Most of the time it is pure technical and plays of emotions. But if you master it, then you may do so. For those who want to continue their work and wants to make money by using their saved money, then go with the long hauls.

The Strategy:

Mark Minervini is one of the Stock Market Wizard and he advocated the use of some principles in selecting his stock. These are some of his principal points he used in what he termed SEPA Strategy. SEPA Strategy has 5 key elements to consider:

1. TREND. Super performance stocks can be identified with the definite price uptrend.
2. Fundamentals which I just discussed earlier. In the early stage the earnings and sales are on the table. Then in the Super performance phase the earnings, revenue and margins improved.
3. Catalyst. Every super performance is ignited with catalyst behind it like new product development, new drug approval, which makes investors excited and drive the interest of Institutions.
4. Entry Points. Timing the entry is very important, otherwise you get stopped out or else considerably miss a turn.
5. Exit Points. Always consider profit. Identifying the end of the run is the key in order to keep what you made.

The Template:

Now this is the Trend Template he used to qualify stocks to fall into the trend he is looking for. These are the criteria that you can pick on a chart for a Super performance stock:

1. Price is above 150SMA and 200SMA(Simple moving average)
2. 150SMA is above 200SMA
3. 200SMA is trending up for at least 1 month (preferably 4-5months)
4. Price is above 50SMA
5. Price is 30% or more above 52Week Low
6. Price is 25% or less its 52Week High
7. RSI(14) > 70 (80 or 90 is preferable)

The Chess Master and a Businessman:

If you are able to pin-point these in a stock then you basically have selected Bishops, Queens, Horses, Towers to move your money in working hard for you. You become the Chess Master. Alas, not all would become good, there are those also that might become pawns, thus, you need to establish discipline of disposing losing stock and never hold on to it believing it will come back. The fundamentals and technical will speak them for you. This is also where you need to establish up to what percentage are you comfortable of losing money based from your entry? 10%, 20%, 30%, 50%? Warren Buffet mentioned once, if you are not prepared to lose 50% of your investment, then you are not an investor. You do not need to be like Warren, that is why you need to choose which percentage are you comfortable with. If you are comfortable with 7%. Then go establish that discipline of really selling that losing position. Be comfortable with it. But if you really choose well in the beginning the right companies, then you are way to go in succeeding. It is like hiring the best employees for your own company. That is why trading is not gambling. It is a business. You are therefore a businessman. Treat it that way and you will succeed. Then even while you sleep and work your normal job, your money will continue to work for you. 

The Golden Rule...Richest Man in Babylon 

The golden rule of the "Richest man in Babylon", always keep 10% of your earnings. Spend whatever you want with the 90% but pay the 10% for yourself. Now this 10% you keep is what you will use to feed to those companies you have chosen to make more money for you. Practice this consistently while you are young then in your old age, you will have heck of a hefty rewards for your retirement. If you are turning towards the golden age. It is never too late if you set your mind to achieve something. Start peeking, practicing and playing with virtual money first in a chess-like trading game like accelotrade. When you feel you are ready, get those 10% you save and trade. But start something, visit accelotrade.com

Keeping that 10% takes discipline as well. So in the end, we go back to the same question. 

What makes a better trader? 

It's the mind set of one that makes him a better trader, a wise investor, a savvy business man, a chess master and a disciplined Wizard.

Trading New 78 Day High on 12Bars RSI above 60 after 200EMA Breakout

Trading New 78 Day High

after 200EMA Breakout, 12 Bars Price above 200EMA and 12Bars RSI 14 above 60.

In the quest of finding that quick move as well as taking profit in a short span of time while banking on the momentum of a stock I was able to find another pattern that when observed carefully could potentially give you a handsome profit. 

This is a Test on August 31, 2020 of EVGN which showed as one of the New 78 Day High on Stockfetcher. Please refer to my stockfetcher script on New 78 Day High on my previous blog "New 78 Day High Offset"

Fig. 1 "EVGN Daily Chart"

This is the chart of EVGN when it made it's New 78 Day High. Try to observe the points that had been numbered according to the Analysis. Better still if you open the image in a separate window so you can follow through the Analysis well.

ANALYSIS:

1. Price B/O (Breakout) on 200EMA after 2 failed attempts on High Volume
   (see 1a and 1b failures).
2. Price Retested on 200EMA. 
   NOTE 1: The Retest have an RSI above 60 
   NOTE 2: Price retest is not even touching the 200EMA
3. 30EMA B/O or crossed above 200EMA
4. B/O failure at 1.50 on August 14, 2020 and
   successful B/O at 2.50 on August 25, 2020.  
   NOTE: RSI on both Failed B/O and Successful B/O were all above 60 
                This is a very bullish signal meaning that bullish momentum is really strong.
5. B/O at 2.00 where the candle had formed an inverted hammer candle.
   NOTE: Observe well that the RSI of this candle is even very strong at 82.88
                This simply means that the bulls are ready to take on beyond $2.00.
6. The Price had always been above 200EMA for 12 bars. Observe well the price action within this span of time. It is creating a Supernova. This means that the price can still surge higher but may have a very strong pullback after. 
   
   Since #2 to #5 our bullish candle move had gone 5 bars already, we are going to Peggy back on the momentum of the last 3 bars until the 8th bar. Most significant move follows a rhythm of 8 bars before creating a strong pullback. 
7. The RSI 14 of the price after the successful 200EMA B/O had been above 60 for 12 Bars. Observe well the RSI wave within this span of time. The wave is even climbing beyond RSI 80. This is highlighted with red rectangular box shaded with yellow.

TARGET CALCULATION

If I would go with my normal way of calculating the Target Price I will use my formula of calculating it. But since I am targeting of a 3 days trade only, I have to use a different approach. However, I will still lay down my formula calculation of the Target Price, so I will know the possible price it can go higher.

NORMAL Calculation of Target Price

TP = Target Price
PH = Previous High is at $1.50 when there was first attempt to breakout the 200EMA at #1a
VL = Volatility Low is at $0.75 the lowest low before the start of #1a breakout attempt.
BC = Breakout Close. This is BC2  at 1.66 after successful B/O at 1.50

TP = ((PH-VL)*3) + BC)
TP = ((1.5 - 0.75) * 3) + 1.50)
TP = 3.91 or $4.00

Based on our calculation, the stock can probably go up to $4.00. What we would like to see is make the most of the 3 days to follow after this New 78 Day High. The $4.00 can be good for a swing trade of another 12 to 15 bars.

Immediate Calculation of Target Price for the 3 bar trade.
Here we do not even have to calculate. 

1. What I normally do is make an arrow from the close of the Breakout candle that successfully broke the 200EMA(See Fig. 2). 
2. I stretch this arrow up to the High of the last candle on August 28, 2020. See H1 arrow with a height of 0.77.
3. I clone this arrow (See Fig.3).
4. then place the cloned arrow H2 on top of the H1 arrow (See Fig.3). 
5. So if the cloned arrow starts at the New High of 2.10 which is the high of H1 arrow, this will end up a high of $2.87 (2.10 + 0.77).
6. So your Target Price on the 3 bar trade will be $2.87 or $2.85 (See Fig.3).

 

Fig. 2 Creating the arrow from the close of the Breakout Candle at $1.33 

Fig. 3 Cloning the Arrow to use as H2 and get the Target Price

ENTRY

The New High had just broken the $2.00 Whole number resistance. Most of the time, after a price breaks out of this level, it will always retest what was broken before continuing higher. So if the price had gone to $2.10, chances are that the price would somehow retrace back to $2.00. With this in mind we will set our entry point at this whole number as our entry.

Entry = $2.00

TRADE CALCULATION:

MONEY = 2,000

SHARES = 1,000

BUY @ = 2.00

BUY AMOUNT = 2.00 * 1,000 = 2,000

TP = 2.85

TARGET AMOUNT = 1,000 * 2.85 = 2,850

PROFIT = 2,850 - 2,000 = 850.00

STOP LOSS = 1.85

LOSS AMOUNT = 1.85 * 1,000 =  1,850

TARGET LOSS = 2,000 - 1,850 = 150

With all the Analysis and Calculation we tried setting up the Trade using the Prediction and Measurement Tool of Tradingview and assume a trade based on our calculations. The following chart gives you the result. A target of $2.85 had been reached. A gain of  $0.85 from the entry of $2.00. A $850 profit in just 3 days of trade on 1,000 shares on an investment of $2,000. (See Fi. 4)

Fig. 4 Target Price of $2.85 had been reached 

Trading New 78 Day High on 20 days Price above 200EMA and RSI above 60

Trading New 78 Day High
after 200EMA Breakout, 20 days Price above 200EMA and 20 days RSI 14 above 60.

In the quest of finding that quick move as well as taking profit in a short span of time while banking on the momentum of a stock I was able to find this pattern that when observed carefully could potentially give you a handsome profit. 

This is a Test on June 26, 2020 of BLNK which showed as one of the New 78 Day High on Stockfetcher. Please refer to my stockfetcher script on New 78 Day High on my previous blog "New 78 Day High Offset"

This is the chart of BLNK when it made it's New 78 Day High. Try to observe the points that had been numbered according to the Analysis. Better still if you open the image in a separate window so you can follow through the Analysis well.

ANALYSIS:

1. Price B/O on 200EMA 
2. Price Retested on 200EMA
   NOTE: The Retest have RSI above 60 
3. 30EMA B/O on 200EMA
4. B/O and Retest on 2.50 Previous Failure Feb 10, 2020
   NOTE: Feb. 10, 2020 RSI below 60 on 2.50 Failure
                Jun. 24, 2020 RSI above 60 on Retest of 2.50 
5. B/O and Retest on 2.75 Previous Failure Feb. 26, 2020
   NOTE: Feb 26, 2020 RSI below 60 on 2.75 Failure
                Jun 26, 2020 RSI above 60 on Retest of 2.75
6. Price Above 200EMA for 20 days. Observe well the price action within this span of time.
7. RSI 14 above 60 for 20 days. Observe well the RSI wave within this span of time. This is highlighted with red rectangular box shaded with yellow.

TARGET CALCULATION

TP = Target Price

PH = Previous High

VL = Volatility Low

BC = Breakout Close

TP = ((PH-VL)*3) + BC)

TP = ((2.75 - 1.25) * 3) + 3)

TP = 7.5

ENTRY

Find Previous High and use that as entry

In this case, previous high is at the tip of the Rickshaw candle on Feb 20, 2020

Entry = 3.35

TRADE CALCULATION:

MONEY = 2,000

SHARES = 597

BUY @ = 3.35

BUY AMOUNT = 3.35 * 597 = 1,999.95

TP = 7.5

TARGET AMOUNT = 597 * 7.5 = 4,477.5

PROFIT = 4,477.74 - 1,999.95 = 2,477.55

STOP LOSS = 2.75

LOSS AMOUNT = 2.75 * 597 =  1,641.75

TARGET LOSS = 1,999.95 - 1,641.75 = 358.20

With all the Analysis and Calculation we tried setting up the Trade using the Prediction and Measurement Tool of Tradingview and assume a trade based on our calculations. The following chart gives you the result. A target of $7.5 had been reached. A gain of  $4.15 from the entry of $3.35. A $2,477.55 profit in just 7 days of trade on 597 shares on an investment closed to $2,000.

Understanding the NIO Trade - MINOLA New 55 Days High - $1000 Profit that went down to $400

Trading with NIO 

A $558 Profit that turned into just $200.00 profit.

The market has all the opportunity to make you money, but you need to be decisive when to fold so that you can profit as much as you can. When the opportunity arise of having a good profit, take it and keep it in your pocket. Do not wait until it is wiped out from the table by the market. I know this needs a lot of balancing of the pros and cons. 

Here is the scenario that needs to be understood well about the trade with NIO.

NIO had enjoyed a pretty good ride with the rise of TESLA

The Electric Vehicle Industry had been surging recently, especially with the leading innovator TESLA. March 19, 2020, TESLA was just trading between $358.00 and $452.00. This was during the lockdown time of Covid-19. But 5 months later TSLA surged to a high of $2,295.00. An explosive gain that made it number 1 on all Electric vehicle makers and even surpassing General Motors in capitalization by 9.6x. GM has a capitalization of 42.96B while TSLA had now reached a capitalization of $412.4B. No wonder GM is shifting its Corvette engineering team to its electric and autonomous vehicle programs. Tesla with its historic rise had also announced a 5:1 Stock Split in order to be able to make its stock price affordable for everyone. Another catalyst of its continuous upward move

Because of the rise of TESLA, all other electric vehicle manufacturers had enjoyed a good rise in stock values. These include NIO, FUV, NKLA, WKHS and even enticed new electric vehicle maker XPEV to make its IPO debut yesterday August 27, 2020.

NIO hitting New 55 Days high with a breakout on good volume.

March 19, 2020 NIO was just merely trading between $2.23 and $2.55. That was during the lock down on Covid-19 pandemic. July 13, 2020 when businesses had been opened again with social distancing, the stock had hit a new high of $16.44. An impressive 644% increase in value. After that rise, the stock pulled-back to a new low of $10.46 on July 17, 2020 and continued to oscillate its price in contracting pattern with volume diminishing. This was the so called VCP formation or Volume Contraction Pattern. This had gone for 1 month and 20 days since July 02, 2020 when it made its first Gap-up breaking out the high of $9.00.

The pattern 39d-36/12-3T was the reading of the VCP pattern before August 21, 2020. It simply means 39days of price contraction starting with -39% and currently sitting at -12% VCP in 3 touches of contraction. On August 21, 2020, it had actually made -9% in contraction which is pretty closed to around 5 to 7% of which most of the breakout occurs. Indeed by August 25, the breakout occurred with price breaking its previous high of $16.44 and reaching to a new high of $17.87, accompanied with a strong volume. 

How the formation was caught?

This formation was perfectly shown with our stockfetcher filter MINOLA with New 55 Days High.

MINOLA is a term that combines the system of Mark Minervini, William O'Neal and Larry William. Please see previous blog on MINOLA.

Entering the trade during the breakout.

Entering during the breakout on the last half of the trading session is a good strategy to have the trade to sleep over and pop in the morning. When you notice a brekout on the VCP formation like this, try entering on the last session of the day when most of the short sellers are actually being squeezed. 

NIO on the next day, August 26, 2020 made a gap-up which shoot its price to a new high of $20.97

While the buyers are so eager to purchase more shares of NIO, that would have been the time to collect most of the profit. But knowing that breakout like this could run several days more, hanging on with the shares would be locking in more profits, especially when all the news are favorable with the stock. There is a saying which goes "Buy the rumors and sell the news." While the good news had been flying like hotcakes, it was actually a good time to sell.

REVIEWING THE NEWS

The pop would have been a good ride. Most of the time the price would continue for several days based on the positive news. And here are the positive news of NIO that made it breakout its VCP formation.

1. August 25, 2020 NIO had been upgraded from sell to neutral by the bearish UBS Analyst Paul Gong as the fundamentals of NIO had improved in Q2 of 2020 with a good guidance for Q3 of 2020. Its sales in Q2 of 2020 had also increased by 146.5% compared to Q2 of 2019. It had also surpassed the sales of Pandemic laden Q1 2020 by 177.6%. With this kind of news, you will surely have positive outlook from investors who are willing to bet on NIO.
2. August 26, 2020 NIO soared to a new high after a bullish call from Morgan Stanley. Tim Hsiao made a target of $20.50 for NIO and the report continued to explain that NIO after securing a $1 billion investment from state owned Heifi, it had actually removed the risk of not having enough capital to sustain its production of next year due to its net loss and heavy capital consumption. The target was actually reached and NIO had made a new high of $20.97.  
3.  NIO is enjoying its ride with the rise of TESLA stock. Having NIO as the next TSLA( Tesla, the leader in the electric vehicle design, quality, production, good management, revenue generation and sales). NIO had not achieved anything like TESLA yet but had made great production of SUVs that have similar technology as TSLA. Being a Chinese company, it can certainly offer at a cheaper price range with their electric vehicles. 
4. August 20, 2020. NIO during the previous days had actually made a good incentive program for the buyers to make the purchasing of its EV a lot cheaper by launching battery as a subscription service. This innovative way can lower down the cost of acquiring the car compared to its standard package. If this incentive would click, this can certainly increase their sales. Look at #1 as it had been slowly pumping higher its sales. This is really big plus for NIO.
5. With the plan of course to open more facilities in Europe, they are actually gearing up for more exposures and eventually sales. The only downside, is that they had been burning their cash massively with their production and they are in need of more capital in order to support their move. The company had a net loss of 43M in Q1 of 2020 compared to the gain of 42M Q1 of 2019. But they were able to turn things around in Q2 of 2020 when it had made 177.6%  more sales compared to Q1 of 2020. And they are getting much attention now in the market. They can certainly be the next TESLA or at least comparing to AMD and NVIDIA of Graphics Processing Unit manufacturing. Tesla is the NVDIA of EV while NIO is the AMD of EV. 
6. The Q2 2020 result still need to be carried and surpassed in Q3 and Q4. This proof of revenue is what makes the pop to be short lived, as big time investors would like to make sure that it can deliver and have all the financial ammunition to propel its ascent. The news indeed fueled for a pop from the breakout high of $17.87 to a new high of $20.97. Entering at $17.25 during the start of the breakout would have been a nice profit of $3.72.  
   
   
7.  Based on the strength of a breakout with a gap-up and a good volume, the run would have been a continuous upward move. Yet it stalled on the second day after the gap-up. This stall was actually triggered by the recent news that NIO is offering $1.5B more public offering to raise more money as a capital for their minority stake acquisition, research and development in autonomous driving, and global market development. They already have an injection from Heifi, the Chinese State owned firm which help NIO ease the burden of cash shortage. This new cash will enable them to research more on autonomous driving as well as acquire more stake of NIO China. 
   
   Despite the good intention, Big time investors do not really like to see this kind of things. So, the price of the stock most of the time would always fall. On the other hand, Capital investors would love to invest their money with companies that have great potentials. And NIO has the potential to compete with TSLA, so the capitalist would seize this opportunity. But, Capitalist would never like to buy the shares at a high price. Market Makers knew all these and would do all in their powers to basically shake the market to induce fear to other weak investors. Once these weaker hands get scared, they will all relinquish their shares to the Market Maker and Market maker will have a boot load of shares to offer to big time capitalist. Thus, we will see NIO shedding off its price in shorter time, but in the long run, will see Capitalists slowly accumulating shares of this stock. Others shares will be purchased by Morgan Stanley, China International Capital and Bank of America, who are the underwriters of this offering.

The 15min Chart of NIO showed 2 gap-downs after its Gap-UP. The first Gap-Down should have been the clue of the imminent change of direction. The price tried to close the first gap-down but could not breakout from it. It failed and it made another gap-down.

The entry we had @17.25 if sold at @20.30 after the first gap-down signal would have made a nice profit of $3.05. This would translate $915.00 on 300 shares. But letting the price slipped without analyzing what happened in the 15min chart the price had cracked down again for the second time, leaving no choice of disposing the shares @18.64. Instead of $3.05 profit it was cut into $1.39 profit translated into $417.00 profit only for the 300 shares. Greed can sometimes cloud our judgment in analyzing the stock chart. Always make sure to plan a counter attack on major signals. Breakdown is a serious signal and therefore should not be taken lightly. 15minute chart and other time frame like 5min chart are used in contracts with the 1 day chart for they provide the left and right mirrors of the stock highway. The trade was still profitable but half of the gain was taken back by the market. Good trader should not allow this to happen.

In the long term, this NIO can still be a good candidate for ore upside. An appropriate entry should be planned carefully by scribing a new VCP. 

For now, the price seemed to be closing the previous gap-up  @17.85. If might probably go down still. The best course of action is to let the market show its move and if its favorable, ride on the shoulders of the giant. If the ride is good for 2 days or just 1 day based on what you see on the chart, react accordingly and make sure not to give back the money to the market.  
 

XPEV - XPENG VEHICLE - New IPO in EV who will be competing with TESLA

 A new Chinese company had just made its debut in stock exchange today. It is called XPENG, one of the leading Electric vehicle company in China who had done a lot of production in China is now entering the US Market for electrical vehicle offering to the public.

Brian Gu, who is the Vice Chairman and President is saying that they are waiting what Elon Musk could really show during the battery day, if battery power they touted about could really reach the Electric Vehicle to run a million mile before re-charging. 

https://finance.yahoo.com/news/we-are-watching-to-see-if-tesla-and-elon-musk-will-reveal-a-millionmile-battery-xpeng-ceo-171531166.html

XPENG in their website https://en.xiaopeng.com/

have two model vehicles they are posting as their highlighted flagships. So far the following youtube videos made a pretty good review and explanation of why XPENG cars are pretty much a good buy in terms of specs and technical advancement, of which may even be better than TESLA.

1. G3 - Super Long Range Smart SUV
   
   
   
   
   
   
   
   
   
   
   
   
   
   
2. P7 - Super Long Range Smart Sedan
   
   
   
   

And here's how it looked like in its 5min chart debut.

 XPEV open at $25.00 and get hammered down to $22.33 but was able to get back immediately to its high of $25.00 in just 3 sessions after its pullback. Yet from then on it just continued to slide downward to a low of $22.57 and kept hovering on that level. So far financially wise, this manufacturer will have to prove first its performance, sales and revenue and not just its fancy look and low price scheme. You can keep this stock on your watchlist for now but not yet in your portfolio.

AMD - huge run after VCP - $53.00 or 189% profit after a year

 Last Jul 5, 2019, I sent out an email about my analysis on AMD.

This was the content of that email.

1. This AMD formation is the 3rd VCP from the Darvas Base of $16-$20 range. See Darvas Box (range: $16-$20)
2. The Failed top of June 10, 2019 on $34.00 formed Double top against Sep. 13, 2019. Therefore you can expect the stock to retest key support levels before bouncing up against this $34.00 resistance.
3. The possible key supports are the whole number $30.00 and $28.85 near the close of the 2 candles supported with 2 green big volumes. See circled supporting volumes and their corresponding candles.
4. If you count the number of bars associated from previous breakout to breakout on the VCP, the count is consistent with 48 bars. See VCP 1, VCP 2. So if it follows the same pattern, we can deduce that around August 5, 2019, there is a possible breakout from VCP 3. I could be wrong, but that is a probability based on the pattern.  
5. The entry range will be based on the retest of the top on each previous breakout. See again VCP 1 and VCP 2. All consecutive drop of candles stop just right about the high of each previous candle trying to penetrate from the bottom left side of each VCP triangle. See the blue arrows pointing upward. So the possible entry range will be between $28.85 to $30.00, which are the support levels in this case.
   WARNING: Make sure to calculate your profit target and your Stop Loss before entering a trade.
6. A strong volume is needed to breakout the $34.00 resistance, otherwise it will continue to drop and retest again another key support before creating a triple top.
7. If you enter on 28.85, make sure to place a stop loss at 27.50.

Check the chart I loaded up with my analysis. https://www.tradingview.com/x/d1kGZGUu/

Cheers and have a good one.

My advise at that time is to position around $28.85 to $30.00. Had you done so, you could have made around $53.00 profit.

Today is August 12, 2020 1 and a half after.

And here is the chart of AMD. 

TSLA - Tesla just made a 5 to 1 Split

Tesla during the early Feb 2020 had made a high of $968  which bottomed to a low of $350 during the lock-down because of Covid-19 pandemic. But since then it made all time high of $1794 around July 13, 2020 when some key businesses had been opened. The historic rise was also due to the fact that Electric vehicles had been hyped throughout all multi media channels adding the good revenue of Tesla and its turn around into massive production after the injection from the US government. Almost throughout the entire pandemic the talk of the day is about electric car and Tesla is the number 1 being talked about skyrocketing the value of the company with a capitalization of $264.37B making it 6.6 times greater than General Motors sitting at $40.042B. This made Elon Musk to become the 5th richest man in the world with a net worth of $74B surpassing Warren Buffet.

The catalyst of the its move was significantly due to the fact that it had surpassed the analyst prediction of Wall Street. During its 2nd quarter where in the analysts have predicted only a delivery of 20K vehicles, Tesla made a surprising delivery of 90K vehicles. Its loss of $1B last 2019 had now been a turn around of a net income of $197M. Musk had delivered despite all the negative criticism and oppositions from Wall Street itself and the Billionaires from the auto industries. Tesla has now become the leader in the electric vehicles and would even become the leader of the entire auto industry, if the rest of the other gas-fueled vehicle manufacturers could not make or compete with Tesla's dominance. It's giga factory for batteries that would enable its car to run not just 200miles before re-charging but run a million miles is phenomenal. Perhaps this breakthrough, would negate any other car manufacturers to take the lead as they are all falling behind now against Tesla.  

 And today, Tesla had just announced a 5:1 stock split which will enable its high price to be more affordable to retail investors and traders and even quintupling the shares of Big Fund managers and Insiders. It is currently sitting at $1,515.72 as of this writing. This maneuver by Elon Musk is a replica of what Apple had done with their high profile stock which had undergone a stock split to allow more buyers to take position. So if you buy 1 share at $1,500 of TSLA you will end up having 5 shares of $300.00/share. And most of the time, very good companies who makes a split would usually be able to carry the price again back to its former high after the split. Tesla has all the potential to do so when gas-fueled cars are later on going to be phased out against eco-friendly cars. And Tesla is even touted to probably hit $7,000/share. If you can position today or had already have a position, you are in for a bull ride.