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5 phase Trade

/5 phase Trade

The 5 Phase Trade: Lesson 4

My Explanation  My Interpretation of “Why a five phase trade?”   Phase One   The Build Up. This is the initial euphoria wave when company directors come up with a new idea, often joining into the latest trend. It may be a move into uranium, gold, nickel, mobile phones, medicine, waste disposal or whatever the latest fad or new technology may be. Whatever it is, there is a move afoot and a feeling of excitement.   Phase Two   The Entry. The Educated Investor enters the market. This is

The 5 Phase Trade- Lesson 3

The Five Phase Trade   Phase One (P1) – The Build-up   The first people in a position to have knowledge of sensitive information will be the first to start buying a stock. They often do this in a deliberately unobtrusive manner so as not to move prices upwards until they have accumulated sufficient stock. I call this period “The Build-up”. The build-up is a period during which prices are confined to a sideways trading range bordered by a resistance line as shown in the

The 5 Phase Trade: Lesson 2

Plan Your Trade and Trade Your Plan!   A couple of years ago I was doing my homework one Sunday when I spotted a stock that fitted the “Five Phase Trade” category perfectly. Rather than placing the orders with my broker and walking away, I broke my rules and decided to watch the open on Monday morning and transact the business myself, using a recently opened account with an internet broker.   The stock showed significant resistance at the 3.2 cent level so I decided to buy

The 5 phase Trade : Lesson 1

Trading the Spec Stocks  Background   During the Gold Boom of late 1979 and 1980 most of my energy was consumed by trading the very speculative end of the market – the “penny dreadful” stocks that were generally trading at less than ten cents. There were dozens of new floats with an issue price of ten or twenty cents that started trading at twenty or forty cents. It was easy pickings and so easy to make a good dollar, but did I learn