A ranging market will expose which companies are definite leaders, and which ones are merely being carried by the overall wind. If a company has no specific growth catalyst, no specific variable that helps improve its financial metrics, and reliant only on the QE, that company will be teetering and be at risk of traders sentiments and whims every single day. Now if a company has an indefatigable fact- if it has a tangible catalyst but highly difficult to predict outcome? Theres your volatility. Take the case of #PLC. Thats a nice breakout indeed ;) 1.69 with 10m shares on the bid side. Anyone can magically predict the income and how many gambling junkets and Chinese operators the Lawrence Ho, James Packer and Henry Sy tandem can bring to the fold? Anyone? Exactly. Because no one can predict with accurate outcome- the stock will be volatile. It gets its verdict only when the numbers which is 3 months forward pa. On the other hand, December 2,2014 is the opening date of their casino. Melco group is a leader in casinos around the world. Macau has definitely had the tycoon Stanley Ho dominated and owned. Theres hype. Theres chart. Theres catalyst and then... There will always be risks of course. So you gotta do what you gotta do. Trade always with a stop loss coz you never know, maybe youre sitting with a possible 2 bucks? New highs! We have no idea and thats perfect. Thats the greatest company to trade. A company with zero earnings and all potential.
Posted on: Sat, 25 Oct 2014 01:40:31 +0000
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