TRADING TIPS

BFT Risk vs. Reward

Hubert Senters here. Let’s take a look at BFT. There has been a lot of IPOs this year. And there’s been a lot of acquisition funds and stuff like that. Just be careful with them because initially they’re going to act like a lot of penny stocks and people are going to jump in to them but they can also retrace quite a bit on you. But let’s take a look at this one. When I’m looking at this you can see my normal indicators and stuff went on there that’s because this is a daily chart. And it’s only been since October 12th since it’s up so it takes a while for that kind of build up so if I change that to a 60-minute chart you’ll see the rest of my stuff is working. So on this situation I would be looking at a potential retest. Let me jump back here. Let me go back to a daily really quick to make sure I’m thinking about this the right way. If it does retrace a normal retracement would be from this low to that high so a pullback would be around $12.46. If you’re thinking about getting long around $14, $15 just know that it could and quite possibly will retrace. So are you cool with it pulling back to about $12.50 to $11.92. If you are ok with that and you can handle the risk then the trade might be for you. In that situation what you’d be looking for is doing the same thing that we do fibs on low stuff so you go one, two, three and get a potential target. One, two and then let’s go three. So next target could potentially be $16, $17.33 and $18.16. But the risk to the down side is going to be that $11 or $12. I’m going to be hosting a webinar with Steven Brooks on How to generate Weekly Income with Options. If you have trade the stocks and you’ve traded options and you’re just been frustrated because there’s too much complication in options. Steven’s got really effective and really simple to easy use option strategies and I’ve seen the results and I’m impressed and I think you will too. Sign up for the webinar. CLICK HERE TO REGISTER. The webinar is going to take place Wednesday, December 16th at 7PM EST. I will HYPERLINK you to this page. Good luck. Hope it helps. See you on the next video. Hubert.  

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