Living in a digital world and economy, how safe is your data (and money)?
No, I’m not here to sell you anything, especially cybersecurity and anti-scam solutions.
Instead, let’s be reminded to practice data hygiene and remain vigilant for potential scams.
In an increasingly digital world, the demand for this component continues to rise.
This component enables the performance of electrical devices and electronics, facilitates massive data transfer, and of course, advances artificial intelligence (AI).
Such is the critical importance of this component that it’s dubbed as the oil propelling AI.
Before I reveal this component and this week’s #PowerStocks pick, let’s review last week’s – Core & Main (CNM).
Review Of Last Week’s Pick Of The Week
Core & Main was last week’s stock pick.
It distributes water, wastewater, storm drainage, and fire protection products.
After rising 13.8% in three weeks (and forming new all-time highs in the process), its shares began to pull back.
This pullback is classic.
Its share price dipped deep into its support zone (~$60) on Wed’s trading session before closing just above.
The bulls returned, pushing its shares up by almost 2% in just 2 days!
Where do I plan to take a profit at?
Head over to my Telegram Channel to find out!
Speaking of Telegram, my team and I will never ask you for your hard-earned money for “investments”.
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.
A list of our official communication channels can be found here.
Why Is Swing Trading Advanced Micro Devices (AMD) Worth It?
Source: amd.com
Advanced Micro Devices is a well-known semiconductor developer, belonging in the Technology sector.
With the growing importance of semiconductors worldwide, it enjoys an eye-popping market capitalization of over $254b, ranking it as the world’s 49th most valuable company.
The performance of its shares has been nothing short of magical, consistently rising in price—each of its upmoves measures between 5.8% and 45.7%.
Having risen 20.8% in just 10 days, its share price has begun pulling back.
Based on my analysis, there’s a high chance that its shares will pull back slightly before rising. And I’d like to seize this swing trading opportunity and ride its shares higher.
What’s my game plan?
Where’s a favorable price area to buy its shares at?
Continue reading to get the details.
P.S. What if I told you that you could drastically gain control over your emotions of fear and greed, and master the stock market in a short amount of time?
My team and I have worked tirelessly to help you achieve results fast.
Click on the banner below to claim your stock course for free (limited time) now!
Performance Of US Stock Market vs Advanced Micro Devices (AMD)
When I’m on the lookout to buy stocks for an explosive swing trade, the 1st thing I pay attention to is their price trend.
I’d want its share price to be in a strong uptrend because this will sharply increase my chances of profitability.
Looking at the chart above, is the price trend of Advanced Micro Devices’ shares in a strong uptrend?
Great that it is!
Next, I’ll want to compare the performance of its stock against the S&P 500.
Why?
I seek to achieve a return that exceeds the market’s, making better use of my money and time.
Referring to the comparison chart above, which has enjoyed a stronger performance in the past 3 months?
While the S&P 500 has risen 19.2% over the last 3 months, the shares of Advanced Micro Devices have soared nearly 80% during the same period.
Now, that’s a 4.1x greater return than the market!
I’m all ready to buy its shares for an explosive swing trade.
But before I get too excited, let’s analyze its shares further.
How Explosive Is Advanced Micro Devices (AMD)?
Because I want to buy its shares and ride its next upmove (and not participate in its pullback), my holding period will be short-term. Therefore, I want its shares to have the ability to explode upwards.
Have the shares of Advanced Micro Devices been able to explode upwards consistently?
I’ve marked out its explosive upmoves, and I’m loving what I see.
The shares of Advanced Micro Devices have exploded upwards 20 times in the last 11 months, with each of the upmoves measuring between 5.8% and 45.7%!
This next finding will blow your mind.
Advanced Micro Devices is the world’s 49th most valuable company, boasting an enormous market capitalization of over $254b.
For the shares of a company of this size to consistently explode upwards between 5.8% and 45.7% is mind-blowing!
Additionally, I appreciate that Advanced Micro Devices enjoys an enormous 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 Advanced Micro Devices for an explosive swing trade?
Key Price Levels
In almost everything in life, timing is important.
Stocks aren’t the exception.
Buying a 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!
So, is there a way to tell whether the time to buy the shares of Advanced Micro Devices is here?
Yes!
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.
Did you also identify a support zone around $154?
That’s the price area where its shares could fall to before bouncing and rising higher.
Thus, I’ll be watching for a pullback to around $154 and a bounce before buying 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.
Claim Your Free (Limited Time) Stock Course Right Now:
The stock market is full of traps laid out by professional traders.
Many new traders are often left confused by conflicting signs and signals.
Worse still, ~80% of traders lose money.
This is because trading isn’t just about skill alone.
It includes the mastery of your emotions.
But what if I told you that you could quickly gain control over your emotions of fear and greed and master the stock market?
My team and I have worked tirelessly to help you achieve results fast.
Click on the banner below to claim your stock course for free (limited time) now!
