How to make money tracking High Priced Stocks | stockbee

11/27/2019

How to make money tracking High Priced Stocks


AMZN is 5th highest priced stock in market with very good liquidity. These stocks when they move move in 50 to 100 dollars plus swings in few days.
I was watching AMZN last week as it was about to form bottoming setup.

On that day it did not close near high. (This is why I wait till last 2 minutes to buy these kind of setups. If you buy early you can have stock reverse on you as happened in QCOM yesterday). However the next day it showed very good action near last 5 minutes. I was waiting and entered in last 2 minutes for 1745.79.  

When I enter these setups near close I put stops next day before open. In this case my stop was 10 dollars.


Next day morning stock had a gap and kept going up and was up 28 dollar for the day. Stop was moved near close to protect half of days gains.

Yesterday stock again had a gap and I was watching to get out near a round number like 1790. When it came near that price I sold for around 1789 by 9.45. (I would have held this as swing for few days for potential 100 dollar profit per share. but due to my travel decided to take the money and run).

$4300 dollars profit on 100 shares for less than 2 day hold. 10 dollar stop would have been .57% risk.

Find trades with less than 2.5% risk that is my quest. High priced stocks anticipation/reversal often offers you that opportunity.
If you are serious about making money trading , track the top 50 high priced stocks. You can find multiple low risk opportunities like these in them. 

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