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Sunday, December 1, 2013

Sunday = Prediction of good Investments



Here are my prediction of good investments for next week.

I picked these 2 among others to talk about something really important if you are a trader. The importance of Stop Loss and the importance of dividing your money among investments.

Every time I invest I divide my money among the stocks of the week and I divide the money based on the Stop Loss. HOW???

I calculate how much money I can afford to lose of the trade achieves Stop Loss, because, sometimes the Stop Loss is 5%. Other times can be 11% (example MPLU3).

So, every person has to know how much you can afford to lose, and divide the money among trades. In this case, you could decide to divide X on GOAU4 and X/2 on MPLU3. Therefore, if MPLU3 achieves Loss, you will lose the same amount if GOAU4 achieves loss.

This is a suggestion that helps when you have trades with huge Stop Loss like MPLU3.

Another thing I want to discuss quickly, is the Stop Gain price. I recommend the one that has a good probability and a good 'profit-loss'. You may decide to sell everything on +1% because the probability is higher. Others my decide to sell everything on +5% because it has the best 'profit-loss'. Other may sell 50% of the trade at 1% and the rest at 3%. Conclusion: You should do something that makes you comfortable.

IBOV continues with a lot of volatility, and the market is testing 51,000 and 54,000 almost every week.

Predictions:
GOAU4: Start Gain (buy ONLY IF achieves) 23.62 ; Stop Gain +2% ; Stop Loss 22.38
MPLU3: Start Gain (buy ONLY IF achieves) 29.46 ; Stop Gain +3% ; Stop Loss 26.05

Have a great week.

Leonardo Monte.

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