Happy 61st birthday, Singapore!
National Day never fails to bring back memories of my childhood, especially the school-going days when we assembled in the hall to sing National Day songs and play traditional games such as Chapteh.
What’s your sweetest memory of National Day?
It’s a miracle that Singapore has come thus far, from a sleepy fishing village to a modern metropolis in just a couple of decades.
Thank you for all your hard work and dedication to building this nation.
As we continue the good work of nation building, it’s my pleasure to share with you my findings in the stock market.
But before I share my findings on this week’s #PowerStocks pick, let’s review last week’s selection: Coca-Cola (KO).
Review Of Last Week’s Pick Of The Week
Coca-Cola (KO) was last week’s #PowerStocks pick.
It’s a well-known brand and the choice of drink for many worldwide.
Despite its big market capitalization of over $376b, its shares have been exploding higher continually – 13 times in the past 11 months, with each upmove measuring between 4.8% and 13.2%!
After rising 12.2% in a week, Coca-Cola’s shares began pulling back. I’m glad that they pulled back to just where I’d expected them to – at $86.30.
That got me excited as I waited for a bounce.
It soon came, and I can’t wait to take profit. Where am I looking to take 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.
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Why Is Swing Trading Imax (IMAX) Worth It?
Source: imax.com/en/sg
IMAX is the gold standard for an enjoyable cinematic experience, consistently delivering an immersive and hyper-realistic experience.
This explains its longevity and the sizeable market capitalization of almost $3b.
Delivering a delightful experience to its audience is great. Are its shares also delivering an exceptional experience to traders?
Yes! Its share price is capable of bursting upwards repeatedly, between 4.4% and 38.8%, 26 times in just the past 11 months!
After rising by 38.8% in 2 weeks, a pullback finally appeared.
This got me excited because I’d like to buy its shares for an explosive swing trade at a favorable price.
Where’s this favorable price area I’m looking 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 IMAX (IMAX)
What is the 1st thing I’d want to know from this analysis?
I want to identify the trend of IMAX’s share price.
Why?
Knowing the trend of its shares allows me to determine whether I’d look for a buying or shorting opportunity because following its price trend will sharply increase my chances of profitability.
Given the mighty uptrend in IMAX’s share price, I’d like to identify a buying opportunity.
Great! But that’s not all.
I’ll compare the performance of the S&P 500 (black) against IMAX’s shares (blue).
A stronger performer is more likely to continue bringing a higher return; therefore, buying the stronger performer is more likely to make my hard-earned money work harder.
While the S&P 500 had climbed 4.8% in the past 3 months, the shares of IMAX shot up by over 37% in the same time period! That’s a mighty outperformance by IMAX of over 7x!
I want to buy its shares for an explosive swing trade.
But is this all to analyze?
How Explosive Is IMAX (IMAX)?
No, there’s still more to analyze to boost my chances of success.
Because I only wish to ride its next powerful upmove instead of hanging on to its shares, my holding period will be as short as a few days. Hence, I want its shares to have the ability to explode upwards fast.
Have the shares of IMAX been exploding upwards consistently?
Marking out the explosive upmoves for the past 11 months has left me stunned.
There are 26 explosive upmoves, and each of them measures between 4.4% and 38.8%!
What’s even more impressive?
The share movement of such huge companies is usually more subdued, but not IMAX’s.
Additionally, I appreciate that IMAX enjoys a sizeable 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 IMAX for an explosive swing trade?
Key Price Levels
As with many things in life, timing is key. Trading is no exception.
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 it time to buy the shares of IMAX for an explosive swing trade?
You can have this insight by uncovering its key price levels (also known as support and resistance zones). And that’s what I’ve done in the chart above.
I’ve marked out a strong support area around $47.50, which I want its shares to pull back to and bounce.
Thus, I would like to wait for the scenario above and a bounce off $47.50 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!
