Do you have a home or auto loan?
Ever since the rise in interest rates in 2022, interest rates have remained high. I can vividly remember the moment when the interest payment on my home loan jumped.
Are interest rates finally coming down?
Fed Chair Jerome Powell signalled that interest rate cuts could take place later this year. That got the market excited, sending the major indices rising around 1.5%.
How has this affected last week’s #PowerStocks pick: Agnico Eagle Mines (AEM)?
Review Of Last Week’s Pick Of The Week
Agnico Eagle Mines (AEM) was last week’s stock pick.
It’s the world’s 2nd largest gold mining company.
Having risen by more than 12% in 9 days, a pullback emerged.
Do you remember my trade plan?
I had anticipated its shares to pull back to around $130 and bounce. And this happened last week!
Where’s a good price area to take profit?
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 Etsy (ETSY) Worth It?
Source: investors.etsy.com
Etsy is 1 of the world’s largest e-commerce stores, boasting a significant market capitalization of over $6.2b.
Unlike many huge companies whose shares suffer from lethargic price movement, the shares of Etsy are active, bursting upwards consistently.
In just the past 11 months, its shares have burst upwards 25 times, each measuring between 4.6% and 41.7%!
Furthermore, the share performance of Etsy is almost 3x superior to the overall market’s.
A pullback is finally here, providing me with a fantastic opportunity to buy its shares and ride its next big upmove.
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 Etsy (ETSY)
What do I want to find out at the start?
The trend of Etsy’s share price.
Knowing the trend of its shares allows me to determine whether I’ll be looking for a buying or shorting opportunity because following its price trend will sharply increase my chances of profitability.
Looking at the chart above, its shares are in a strong uptrend. Hence, I’d like to find an opportunity to buy its shares.
What’s next?
I’ll compare the performance of its shares against the S&P 500.
Why?
I want my hard-earned money to work hard for me. A stronger performing stock is likely to continue bringing a larger-than-market return. So, I’ll have a look at the comparison chart above again.
While the S&P 500 has risen 10.7% in the past 3 months, the shares of Etsy have risen more than 30%! That’s nearly a 3x outperformance!
I want to buy its shares for an explosive swing trade.
Should I do just that now?
How Explosive Is Etsy (ETSY)?
No! I shouldn’t buy its shares without conducting a deeper analysis.
Because I aim to ride its shares for its next burst upwards (I don’t want to hold its shares through a pullback or reversal), my holding period will be around a week or 2. Therefore, I want its shares to have the ability to explode upwards.
Have the shares of Etsy been able to explode upwards consistently?
Marking out the explosive bursts in the past 11 months left my eyes wide open.
In just the past 11 months, its shares have burst upwards 25 times, each measuring between 4.6% and 41.7%!
When I found out about Etsy’s market capitalization, my jaw dropped.
This company enjoys an enormous market capitalization of over $6b! The shares of large companies don’t usually enjoy large bursts in price, but Etsy is different.
Additionally, I appreciate that Etsy 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 Etsy for an explosive swing trade?
Key Price Levels
Timing is crucial for many things in life. This includes stock trading and investing.
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!
Is there a way to tell whether the time to buy the shares of Etsy is here?
Fortunately, 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.
After a strong upburst of 27.4%, a pullback is here.
Having identified a resistance area around $63.60, what’s my game plan?
I think that the shares of Etsy would break above $63.60 and rise from here.
Therefore, I’m waiting for the shares of Etsy to break above $63.60 before buying them 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!
