Let’s take a look at a couple of questions here from David. I’m assuming they are the same person since there’s the same name but David is common name so it may not be. I’m receiving this video or questions a little bit late.
I’ve been watching your videos for a while and am looking at joining your service. Does ZM have the juice to take out the most recent high of $281 by this Friday 8/7 if so, how high can it go this week? Thanks, David.
Well, David let’s take a look at that and then we’ll take a look at the second David or the same David’s question on Copper. So if if look at Zoom I’m assuming you’re saying 8/7 that’s right up in here. So right now, it’s at $290. Clearly that’s going to take out $281 since it’s at $290.
Let me see if I can help you with a larget target on this bad boy. So what we do is we take a look here at this and pretty simple. You were talking about this area right here of $281.
It’s taken that out. It did not do it by 8/7. It had to wait until today to do it at 8/20. Here’s what I think Zoom is going next. So we’re going to do a Fibonacci extension. We’re going to go low, high, low.
It’s not going to be perfect but it will do the job. One. Two. And then three. Next target is going to be $300 then $318, $337 and $348. Your question follow-up if your intelligent would be like how long is it going to take?
What you’re going to do is figure out how big the Average True Range is this thing is. Click Insert Analysis Technique and you probably can figure this out on your own but I’ll give you a little help.
We’re going to go Average True Range and hit ok. And then just hit ok one more time. Average True Range is about 13 points. Let’s just say that’s 10 points. Let’s take 3 points heat off of it.
If it’s 10 points and if it’s right now it’s trading at $290 and it has to go 10 points it could be at $300 by tomorrow or the next day. Let’s take a look at that second question before I leave.
The other question here is from David also. It could be the same dude or different dude. What stop-oss would you use when trading Copper Futures? Thanks, David.
It’s really going to depend on a couple of things. So if you’re looking at Copper which is a nice trading instrument if you’ve never traded it. So if you’re looking at Copper which is right here.
First you’re going to have to figure out what size you’re going to trade on Copper. That’s going to determine your stop too. So what I like to do is I use a percentage of the Average True Range so at this point it moves about point 078.
I would do a percentage of that so that I’m ok entering that and the stop-loss really has to do with your risk reward ratio, the amount of the size of your account and the amount of risk you like to take so I would love to give you a blanket so you should use 12 cents or 25 cents or 50 cents. It’s just harder than that.
So I would have to know more information to give you a better educated guess on a recommendation on the stop. But what I tend to do is I take a percentage of an Average True Range.
And I don’t want to be outside that Average True Range unless I’m doing a swing trade. If I’m doing a day trade I want it to be a sleeve of percentage on the Average True Range. and just work your way back into something that you can’t handle.
Because what I can handle maybe less than what you can handle. And what you can handle maybe bigger than what the other person can handle. It’s all predicated in trading skills, entry and exit techniques and the side of your account and expense you have with that particular market.
I’m going to HYPERLINK to Mark’s live gold is the trade of the decade. He’s having a webinar August 26th at 8PM EST. I’m going to HYPERLINK you to that.
Good luck. Hope it helps. See you on the next video.
Hubert.
