Broadcom is my latest Acquisition
Finally had the limit order go through. When doing it, I had to monitor the stock and look for the lowest price I could. I acquired 75 shares for $45.40.
When reading about channel trading, I think its the easiest way to make money. Buy low and sell high. And do this again and again for a stock. Monitor it, and find out its channel of trading with highs and lows. Stocks have a trend they follow (not all the time), and you can see these trends within a channel.
In this case I've drawn some lines to give me an approximation what it's channel is like and gives me price point to look to sell at.
Broadcom looks like a great strengthening stock over the year. Don't buy stocks while their weakening. In my case I wanted to buy it right after it had some light on it and started rising (but as my recent blog post, the limit order didn't go through). The stock went down a little the next day and it was time to do some buying. The stock is hopefully going to rally, and volume will increase.
I also put a limit sell order on this stock once it hits my price target of $48.90, so I make a nice profit and aren't too greedy.
When reading about channel trading, I think its the easiest way to make money. Buy low and sell high. And do this again and again for a stock. Monitor it, and find out its channel of trading with highs and lows. Stocks have a trend they follow (not all the time), and you can see these trends within a channel.
In this case I've drawn some lines to give me an approximation what it's channel is like and gives me price point to look to sell at.
Broadcom looks like a great strengthening stock over the year. Don't buy stocks while their weakening. In my case I wanted to buy it right after it had some light on it and started rising (but as my recent blog post, the limit order didn't go through). The stock went down a little the next day and it was time to do some buying. The stock is hopefully going to rally, and volume will increase.
I also put a limit sell order on this stock once it hits my price target of $48.90, so I make a nice profit and aren't too greedy.
2 Comments:
A good post on the potential of chanelling. Just a FYI comment, 3 points are required to signify the beginning of a channel, i.e. the price drops off from resistance, bounces up from support and then bounces off resistance again. The more points of validation there are, the stronger the channel becomes. A break out of the channel generally means the start of a new trend, or possibly even consolidation.
Keep up the good work!
-DK
By Anonymous, at 3/23/2006 5:36 AM
Thanks DK for the comment, great information I'll add to my blog soon!
By Tom_e_Rock, at 3/23/2006 12:05 PM
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