Videos of the Nepal-Tibet landslide are circulating all over the Internet. It breaks my heart to watch the disaster and know that hundreds have perished and thousands are missing.
It’s a tragedy, and I pray for closure and peace to fill the hearts of everyone affected.
August is ending real soon. Throughout August, we’ve experienced volatility (though it wasn’t as volatile as usual).
September is another notorious month, but I think this stock could perform.
Before sharing my findings for this week’s #PowerStocks pick, are you curious to find out how the stocks shared in August performed?
August began well, beating the expectations of many.
With the war in the Middle East still ongoing and the expiration of the peace deal between the US and Iran, many were expecting a drop in the market. But the US stock market proved to be resilient.
In this backdrop, the S&P 500 rose 2.9% in August.
How did our #PowerStocks picks perform?
There’s no entry for IMAX and RPM while I’m waiting for Robinhood to reach my target price.
Overall, the stock picks have delivered an average return of 2.9%, on par with the S&P 500.
With that, shall we review last week’s #PowerStocks pick: Robinhood (HOOD)?
Review Of Last Week’s Pick Of The Week
Robinhood (HOOD) was last week’s #PowerStocks pick.
It’s a fast-growing broker, well-loved stock for its low fees, ease of use, and its wide variety of cryptocurrency services, including staking and earning rewards from its partner blockchains.
After surging 18.1% in a week, a pullback emerged. Thankfully, I’ve spotted a support zone that could be a great area to buy shares for a swing trade.
Robinhood’s shares exploded immediately, soaring as much as 8% in a day!
Although its share price has pulled back once again, I think that its shares could head higher.
Where am I looking to take profit at?
Head over to my Telegram Channel to find out!
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I know and understand that the allure of high returns without effort is highly attractive. It breaks my heart when I hear of people falling for impersonation scams.
To protect you from scams, please note that my team and I WILL NEVER solicit for any investment.
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Why Is Swing Trading CF Industries (CF) Worth It?
Source: cfindustries.com
CF Industries is a leading manufacturer and distributor of fertilizers worldwide, with a market value of over $19b. This ranks the company among the top 3 in its industry.
Despite its huge market capitalization, its shares have consistently burst upwards in price.
In the past 11 months, its shares have burst upwards a staggering 30 times, with each upmove measuring between 5.5% and 28.4%!
A pullback is here, and I’m waiting for it to return to this price area before I buy them to ride its next burst up.
What’s the price area I’m waiting to buy its shares at?
Continue reading to get the details.
Performance Of US Stock Market vs CF Industries (CF)
What’s the very 1st thing I would like to analyze from this chart above?
The trend of CF Industries’ shares (shown in blue).
This is because knowing the trend of its shares allows me to determine whether I’d look for a buying or shorting opportunity. By following its price trend, I’ll greatly increase my chances of profitability.
Looking at the chart above again, I see that the share price of CF Industries is in a strong uptrend! Hence, I’d like to find an opportunity to buy its shares.
What’s next?
I’ll compare its share performance to that of the S&P 500 (shown in black).
Why?
I want my hard-earned money to work hard for me. A stronger-performing stock is likely to continue delivering returns that exceed the market’s. So, I’ll refer to the comparison chart above again.
While the S&P 500 has risen by 1.9% in the past 3 months, the shares of CF Industries have risen by 7.9%, or over 4x more!
I love such an outperformance, and I’m ready to buy its shares for an explosive swing trade.
But are there more to analyze?
How Explosive Is CF Industries (CF)?
Yes, there are more pointers to analyze before pulling the trigger to buy its shares for a swing trade.
Because I aim only to ride its upmoves, which typically last for a couple of weeks, I want the shares of CF Industries to possess the ability to explode upwards.
Have the shares of CF Industries proven to be explosive?
Marking out its explosive moves in the past 11 months left me in awe.
There are 30 explosive upmoves, and each of them measures between 5.5% and 28.4%!
Here’s another fact that blew my mind: CF Industries enjoys a huge market capitalization of more than $19b.
For the shares of a company of this size to consistently explode upwards between 5.5% and 28.4% is mind-blowing!
Additionally, I appreciate that CF Industries enjoys a large market capitalization, as this provides an extra layer of security against manipulation. I don’t wish to lose my hard-earned money to manipulation that could be easily prevented!
Here comes the golden question: Is it time to buy the shares of CF Industries for an explosive swing trade?
Key Price Levels
Like many things in life, timing is crucial when it comes to stock trading.
Buying an explosive stock at the wrong time can result in significant losses and emotional distress. This will cause you to lose confidence, and you’ll doubt yourself even when a fantastic trading opportunity arises straight from under your nose!
But, is there a way to tell whether the time to buy the shares of CF Industries is here?
You can do so by uncovering its key price levels (also known as support and resistance zones). And that’s what I’ve done in the chart above.
Given that there’s a support zone around $125, its shares have pulled back to that area and bounced, what do you think I’ll want to do?
I’ll want to buy its shares to catch its next explosive upmove.
Here’s a pro tip: Instead of staring at your screen, consider setting a price alert on your broker’s platform to be notified so that you can spend precious time with your loved ones.
Which Instrument Should You Consider Using?
Do you ever wonder about the instrument used to trade explosive stocks?
With 3 main trading instruments available – stocks, contract-for-difference (CFD), and options, you wonder which suits you best.
Since stocks (as an instrument) is easy to understand, I shall focus on CFD and options.
Here are the main similarities and differences:
CFD works like a mirror to stocks. When a stock rises $1, its CFD rises $1.
However, due to its unique pricing mechanism, your options price doesn’t rise by the same amount. In fact, depending on the market conditions, the price of your options contract may even drop!
Your CFD broker will charge you a finance fee for lending you money for your trade. However, no lending is required for options, so there is no finance charge.
Because there’s a finance charge by your CFD broker, CFD is not the ideal instrument for mid to long-term trades. On the other hand, options allow you to implement different strategies across time horizons.
Both CFDs and options are leveraged instruments because they allow you to control a larger market position with a smaller amount of capital.
While CFDs do not have an expiration date, options traders must pay attention to the expiration date of their options contracts.
You must be thinking, “What’s the beauty of trading options?”
Options are like smartphones. You can choose to use a smartphone for its basic or advanced functions.
And options don’t have to be all about Math and dry!
It can be made easy to understand through real-life analogies.
In the same way, you can implement basic and/or highly advanced strategies depending on your level of comfort.
Options allow you to be versatile in adapting to the shifting market conditions and capturing opportunities in the process.
Are you a CFD or options trader?
I’m glad to be fluent in both.
Finally, this is for educational purposes. Please perform your due diligence.
All images are taken from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com, unless otherwise mentioned.
Want To Learn How I Find Stocks Like CF Industries?
CF Industries is just one example.
Opportunities like this appear in the market all the time.
The difficult part isn’t knowing they exist.
It’s knowing how to spot them.
And after spotting them, knowing –
→ When does an entry actually make sense?
→ When is good to exit and take profit…
→ And when should you simply stay away?
Without a system, it’s easy to jump between stock tips, news, indicators, and opinions.
You don’t know what you should look out for…
And every trade feels like a gamble. A risk.
So if you haven’t attended my FREE Online Preview before – join the next one.
Not only will I show you how to find opportunities like CF Industries…
I’ll also walk you through how I use a repeatable system to know when to enter and exit – instead of relying on random tips or guesses
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