Hubert Senters here.
In the last video I talked about why you want to stay away from most IPOs but that didn’t really help you if you want to get long, why not? So here’s Pinterest, PINS and it opened up last week and it’s actually having a positive move so that’s a good thing. So one thing you can do is you can use smaller time frames.
I’d go ahead and bracket both the high watermark and then the low watermark of what I’m looking at. And then you can use an Intra-day chart something that you’re okay with a 5 minute, a 10 minute whatever that chart is going to be so that you can trade off of it and then you know that that’s overhead support and resistance, whatever time frame you’re looking at.
So if it was to break and then you could just do a modified version of a bracket trade above $25.17 would be a decent long with a stop of something that you’re cool with risking. So in this case in general let’s say that we are going to get long in this area and we will use the stop of $23.05. We’re only risking a couple bucks. It’s not that big of a deal of offer. We could potentially make money and if we’re wrong we’re going to lose two bucks on the trade.
But we’re not just going to buy it and hold it under the expectation it’s going to go to a hundred like the next Google or Facebook or Amazon and stuff like that. There’s very few companies that our Facebook, Google, Apple and Amazon. And Amazon is one of the really few companies that can go spend money, don’t be profitable then eventually turn it back around. Okay.
Especially when you’re stuff like a Pinterest or a GoPro where you just have just one product or Amazon they kill it and a ton of stuff. They’re hosting companies there AWS. The Walmart of the world now as opposed to Baidu which is in China so Pinterest is not a bad technical set-up if you use your head. Don’t get made to it and use a stop-loss that you’re okay with.
Folks over at Vantage Point have some really cool software. They’ve got a nice little predictive outlook algorithm that will tell you fuzzy math magic math now I like to call it. That will let you know whether the thing that you’re trading whether it’s going to go up or down over the next one to three days I’ve seen it, I’ve used it, I like it, I recommend it to people that don’t have enough time to sit in front of a machine all day long so go over and check out their webinar. That’s going to be Thursday, April 24th at noon EST.
Good luck. Hope it helps. And I’ll see you on the next video.
Hubert.
