Saturday, 7 February 2015

4 by 4 Pull Back Strategy

This strategy was popularized by Market Geeks and consider this strategy as profitable in their 12 years of experience. This works with high volume stocks with both to the upside and downside.

I believed that every Newbies should have their own PAM-payamang strategy whether long, mid term or short term strategy. I would like you to try this strategy with small amount of value, again as a disclaimer any gains and losses will be shoulder by the Newbie blog readers.

1. Identify Strong Trend.
2. Identify the retracement.
3. Get In Before the Trend resumes.
4. Trend Resumes.

First. Look for the stocks with good volume of trades/value and crowds favorite. Example MAXs
The value of trades from the start of year 2015 never went down to 10 million.

Second. Retracement. It should have a good uptrend slope and price in 4 weeks continuously going high.

Third. Get In Before the Uptrend Resumes. After the 100% stock dividends, the price adjusted and continuously slide to below 25 level. In addition to the downtrend was the FOO price @ 17 level, 17 -19 price was the good entry point.

Fourth. Trend Resumes on December 18, 2014. The stock hits the 30 day price high @ 35.50. Many brokers started buying when the company announced the 1000 branches expansion plan of the company.

I hope you will try to study another stock with this strategy and have a good results.

Sincerely yours,

Newbie Mentor


If you don't have a strategy in your portfolio, we are accepting enrollees in the PAM Academy

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