Robbie Burns’ Monthly Trading Diary
“It’s easy to see how market over-reaction over bad news can make you good money. Just give yourself a few rules and boundaries. Make sure you understand the company and are sure it has been oversold.”
GREENCORE GROUP CHART
It’s easy to see how market over-reaction over bad news can make you good money. Just give yourself a few rules and boundaries. Make sure you understand the company and are sure it has been oversold. I don’t want you going out and buying up every company going through a disaster.
If you buy a bad-news share that you think has long-term potential and it keeps falling, set a tight stop, get out and try again when it’s lower. You must make sure you are not trying to catch a falling knife that simply continues to fall. If you get in near the bottom and it goes up, raise your stop under the price. Keep buying as it heads up and keep raising the stop. Happy trading!
June 2014
| www.financial-spread-betting.com | 43