MSFT - Potentially bullish on monthly chart
Although MSFT is still trading below it's 200 day MA, the bullish candle that is forming on it's monthly chart is now screaming "buy".
To keep risk manageable, long with an initial stop loss slightly below 234 (confluence of it's 20day moving average and also the 38.2% fib retracement level of its' recent AB upswing).
If and when the trade goes out way, trail stops upwards.
There are several ways to place our stops depending one's risk tolerance:
1. place a stop loss just slightly below the 20day moving average (smaller losses but also smaller profits as trade could get whip sawed out prematurely)
2. place a stop loss slightly below it's 50 day moving average (to catch a larger move but potentially giving back more profits at the end)
3. wait for a pivot (higher low) to form on the daily chart and place the stop loss just below this new pivot
Trading is not just about entry but also about risk management. Multiple smaller losses but several large profits is enough for one to be a (potentially very) profitable trader.
p/s if stopped out, look for entry again only when MSFT is at least trading above both it's 20day and 50 day MA. Plus some other compelling signals that might be present.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
To keep risk manageable, long with an initial stop loss slightly below 234 (confluence of it's 20day moving average and also the 38.2% fib retracement level of its' recent AB upswing).
If and when the trade goes out way, trail stops upwards.
There are several ways to place our stops depending one's risk tolerance:
1. place a stop loss just slightly below the 20day moving average (smaller losses but also smaller profits as trade could get whip sawed out prematurely)
2. place a stop loss slightly below it's 50 day moving average (to catch a larger move but potentially giving back more profits at the end)
3. wait for a pivot (higher low) to form on the daily chart and place the stop loss just below this new pivot
Trading is not just about entry but also about risk management. Multiple smaller losses but several large profits is enough for one to be a (potentially very) profitable trader.
p/s if stopped out, look for entry again only when MSFT is at least trading above both it's 20day and 50 day MA. Plus some other compelling signals that might be present.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
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