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My 3 Rules For Swing Entries

I get asked a lot how I time my entries. Many of you know that I like to trade mid cap stocks and hold for a couple of weeks’ time.

A good entry, for me, is the difference between a trade working out or not. This is it. As the say in the real estate market, LOCATION LOCATION LOCATION.

It’s no different in trading. When you have good location (entry price) then you are pretty much set up for success.

Take a look at the chart below.

We can see NVDA putting in a double bottom on the 18th of August. This is what I mean by good location.

I have been watching NVDA for a long time. It’s a great stock, it has all the right ingredients for a run. I was ready to buy. What was I missing?

LOCATION.

When I like a stock I’m not just going to buy just anywhere. I’m going to be methodical about it.

When you shop for groceries do you just buy the first product you see? Of course not, you look for the best price. There can be ten different types of apples at the grocery store but you want to buy the cheapest one. The best value.

It’s the same with stocks. I want to buy at the best price. I want to get the most value.

So when I look to buy a stock I will wait until it gives me a good price. I’m not going to chase it.

NVDA was expensive, trading at highs around $180. That was too expensive but I still wanted to buy it.

I waited and it put in a double bottom. I bought at $150. That’s $30 a share discount.

I’m still in NVDA by the way. It’s working like a charm.

Lesson here: wait for a good price. Location is king, just like in real estate.

– Jacob

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