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Learn how to chart your stocks, identify trends, time your entries, execute trades, and manage risks effectively. Practical examples provided for Richemont, ABSA, and DRD Gold.
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Charting your stocks By Garth Mackenzie
Identify the major trend • Time your entry • Execute the trade • Manage the risk
Identify the major trend Uptrend : Richemont (CFR)
Identify the major trend Uptrend : Richemont (CFR)
Identify the major trend Sideways trend:ABSA (ASA)
Identify the major trend Sideways trend:ABSA (ASA)
Identify the major trend Down trend:DRD Gold (DRD)
Identify the major trend Down trend:DRD Gold (DRD)
2. Time your entry Richemont
2. Time your entry Richemont
2. Time your entry Richemont
2. Time your entry ABSA
2. Time your entry ABSA
2. Time your entry ABSA
3. Execute the trade • Buy / Sell Price • Stop loss level • Target level • Risk as a % of account • Quantity
4. Manage the risk • Entry level • Stop loss • Risk as % of capital • Calculate quantity to trade
4. Manage the risk Example: Trading Capital = R100 000 Buy Richemont @ R36.00 Stop loss = R34.00 Risk 2% of capital = R2000 R2000 = 1000 shares R2.00
4. Manage the risk If you don’t bet, you can’t win But If you lose all your chips, you can’t bet