paper trade 1! - anad

Here's what I did this afternoon: I looked at several charts on my amazing home made charting system, and on about chart number 10 there was a breakout. That's our buy signal. It's a teeny tiny buy signal, but the point isn't to choose between buy signals, it's to test the idea that they are worth paying attention to. In a few weeks, or even days, we'll know if this one was. This, folks, is paper trading.







OK. The buy signal is the big green bar at the end of the chart. The buy price is - this is sort of guess work, but - the top of the second to last bar. The stop, and you need to use a stop, is, um, just below the June low.

The next question is, where is this going? In the short term, it's basically $1.20. Just look at the pattern on the daily chart. $1.20 isn't a giant profit, but if you put $1000 in, you can make some money. You need a stop to put $1000 in, otherwise, you risk losing your whole investment. That could happen with a stop, but it's unlikely.

The next target is on the weekly chart, at something like $1.80. That's pretty good money, and it should be reached pretty soon, but you'll probably see a pause at $1.20, and a pause means prices going down, probably to your buy price. If you can sell at $1.20, you can probably buy back near today's buy price, then sell again at $1.80.

Eventually this will probably go to $8, and then $20, but that's a long way off.

Here are the updating charts (you can follow the stocks on these charts):