Did you catch the F1 night race in haze last night?
Sorry, I meant the F1 night race in Singapore.
This edition of the race was made more challenging by the haze that has blanketed Singapore over the past month.
With air quality in Singapore unlikely to improve anytime soon, please wear a mask, stay hydrated, and remain indoors as much as possible.
This might be the perfect time to shortlist the items you'd like to grab on Black Friday, which is slightly more than a month away.
And this brings me to this week's #PowerStocks pick. But before I share it, let's review last week's pick:
Lam Research (LRCX).
Review Of Last Week's Pick Of The Week
Lam Research (LRCX) was last week's stock pick.
It's an enormous technology company that designs, manufactures, refurbishes, and sells semiconductor equipment worldwide, including in China, Europe, the US, and Japan. Unsurprisingly, the company enjoys an enviable market capitalization of nearly $435b.
After exploding by over 30% in 2 weeks, the pullback I've been waiting for happened.
Its share price reached the support area identified and continued hovering slightly below it.
Do I plan to continue eyeing this stock?
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 Visa (V) Worth It?
Source: visa.com
Visa needs no introduction. Many of us use its credit card and services every day, from paying for our transport to meals and shopping.
By being part of our daily lives, Visa has grown into a financial behemoth worth over $723b, This ranks it the world's 2nd-largest financial service companies, way ahead of its closest rival - Mastercard.
While the shares of some large-cap companies suffer from lethargy, Visa's shares tend to explode upward consistently — each of its explosive upmoves measures between 4% and 12.3%.
Its share price could pull back in the coming days after a sharp 8.4% rise
in just over 1 week.
What's my game plan?
Where's a favorable price area to buy its shares at?
Continue reading to get the details.
Performance Of US Stock Market vs Visa (V)
What is the 1st thing I'd want to know from this analysis?
I want to identify the trend of Visa'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 Visa'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 against Visa's shares.
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 3.5% in the past 3 months, the shares of Visa shot up by 10.7% over the same period! That's a mighty 3x outperformance by Visa!
I want to buy its shares for an explosive swing trade.
But is this all to analyze?
How Explosive Is Visa (V)?
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 Visa's shares consistently exploded upwards?
Marking out the explosive upmoves for the past 11 months has left me stunned.
There are 20 huge explosive upmoves, each measuring between 4% and 12.3%!
What's even more impressive?
Visa is the world's 2nd-largest financial company, enjoying an enviable market capitalization of over $723b.
The share movement of such huge companies is usually more subdued, but not Visa.
Additionally, I appreciate that Visa enjoys a massive market capitalization, which 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 Visa 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 Visa for an explosive swing trade?
You can gain 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.
Because its shares have been soaring for more than a week, I expect a pullback.
I've marked out a support area around $381. This tells us that Visa's share price is likely to drop to around $381 before rising again.
Once this happens, I'll be on the lookout for 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.
Want To Learn How I Find Stocks Like Visa?
Visa 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 Visa…
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
Click the banner below to reserve your seat for the upcoming free session.
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