“Power 10!”
That’s the command to deliver 10 of my most powerful strokes.
I fondly recall the trainings and competitions I’d participated in as a rower. Though training was insanely tough, the camaraderie spirit was strong.
My teammates and I hung out and worked out together, pushing each other to become stronger rowers.
The SEA Games in Thailand brought back fond memories of my time rowing.
Which sport did you excel in when you were younger?
Trading the stock market can also be viewed as a sport. To be successful in trading the stock market long-term, you need to be well-trained and disciplined, the same traits needed to be a winner in sports (minus the talent, of course)!
As the stock market continues climbing, many uninformed market participants are feeling a strong sense of FOMO. They want to jump into the stock market now.
But informed traders are waiting on the sidelines for a proven trading setup to appear.
Did a proven trading setup appear on last week’s #PowerStocks pick: Steel Dynamics (STLD)?
Review Of Last Week’s Pick Of The Week
Steel Dynamics (STLD) was last week’s stock pick.
It ranks among the world’s 5 largest steel companies yet its shares have the ability to explode higher repeatedly.
As it had risen by 9.9% in a week, I sensed that a pullback could be near.
And the pullback began on Thur.
Do you remember the price area I’m watching for a bounce at?
Yes, it’s around $162.50. This was also shared in my Telegram Channel.
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 Teradyne (TER) Worth It?
Source: teradyne.com
Teradyne develops and sells test systems for semiconductors and robotics. In short, it’s a cornerstone participant in the AI race.
This explains its massive market capitalization of almost $32b, making it the world’s 39th most valuable electronics company.
Enjoying massive success is great. But are its shares explosive for short-term trades?
Yes! Its share price is capable of bursting upwards repeatedly, between 6% and 40.5%, 24 times in just the past 11 months!
When compared to the performance of the stock market, Teradyne’s shares shine like a star.
While the S&P 500 had climbed 5.9% in the past 3 months, the shares of Teradyne shot up more than 67% in the same time period!
A pullback could emerge soon, 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 Teradyne (TER)
What is the 1st thing I’d want to know from this analysis?
I want to identify the trend of Teradyne’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 Teradyne’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 Teradyne’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 5.9% in the past 3 months, the shares of Teradyne shot up by more than 67% in the same time period! That’s a mighty outperformance by Teradyne by over 11x!
I want to buy its shares for an explosive swing trade.
But is this all to analyze?
How Explosive Is Teradyne (TER)?
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 Teradyne been exploding upwards consistently?
Marking out the explosive upmoves for the past 11 months has left me stunned.
There are 24 explosive upmoves, and each of them measures between 6% and 40.5%!
What’s even more impressive?
Teradyne is a cornerstone participant in the AI race with a massive market capitalization of almost $32b.
The share movement of such huge companies is usually more subdued, but not Teradyne.
Additionally, I appreciate that Teradyne 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 Teradyne 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 Teradyne 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 $188.
Because its shares have been soaring for over a week, a pullback could take place very soon.
Once this happens, I’ll be on the lookout for a bounce off $188 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!
