This model, you believe that current rumors or news about the company and/or the sector will power-fully create a rapid increase or decrease in the price and that you can take advantage of this momentum by buying at the rumor stage and selling when the news comes out, or shortly thereafter. Therefore, you are not necessarily buying real value. You are taking quick ride on the tide.
You can develop a systematic approach that allows you to get in early and get out quickly. If you do not believe that you need to get the maximum profit, you will be happy taking you foot-foot Ring Toss/”Quick and Easy” profit.
Through a system of getting in, taking advantage of the accelerated pace of price increases, and quickly selling for a profit.
To be advance in Trade Model, you can use Technical Data Analysia to observe the movement of the stock. There is indication for the time to BUY in and SELL out.
This Model Require
1. Ability to quickly identify market momentum and news-related price increase/decreases;
2. Ability to make quick, powerful, and congruent decisions;
3. Risk taking, it can take months to build something that can be destroyed in minutes.
Strength
1. This model offers immediate return.
2. This model allows you to maximize your profit in the shortest amount of time.
3. This model strengthens your decision-making capabilities.
4. It requires that you think defensively – a good strategy for all business.
5. Use advance investment tools such as Options Trading, Margin, Margin Financing
6. You will need to expose yourself in Technical Data Analysis; to get know on Global Market all the time.
7. Since all your return is in Capital Gain; you does not need to pay Tax - Tax Free
Weakness
1. This model requires more time and focus.
2. This model has increased volatility – even more than stocks. What goes up, can come down even faster.
3. You have the potential for greater loss because you are buying market psychology, not real value.
4. What you are buying may have no long-term value. Since you purchased the stock base on momentum, you may have overpaid.
Thursday, May 13, 2010
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