Have you ever heard of the saying: “Even a DEAD CAT will BOUNCE if dropped high enough”?

A ‘Dead Cat Bounce’ is the term traders used to define a short-lived recovery from a falling security.
deadCatBounceTEL
Naalala nyo ba ito bago mag-March 2016, ng biglang bumagsak ang price ng PLDT (TEL)?
deadCatBounceTEL1
After the bounce, it continued to fall all the way down to 1614!
deadCatBounceTEL2

Any price that falls lalu na kung mataas ang pinanggalingan will most likely bounce. How high is the bounce? Well, nobody can tell. But definitely, the bounce will not easily go back from the price where it came from.

The important thing to learn here is how to know the price where it will bounce. Let me show you one of my recommendations in IGAN Stocks Reco Mula Kay Green Stickman. This is LRW:
lrw

How did I know that it will bounce on that price? There are actually ways on how to predict the bounce price. Like for example the use of Fibonacci Retracement tool.

So anong lesson para sa “Deadly Dead Cat Bounce” na ito? There are 4 important lessons that I want to share to you:

  1. Don’t chase the price. Remember, hindi lang sa BULL Trap ka pwede maipit. Kung mali ang salo o pasok mo sa pabagsak na stocks, malamang mai-ipit ka din kapag dumiretso pababa ang presyo ng binili mo.
  2. Do not average down at huwag kang umasa na tatalbog ang presyo pabalik sa itaas especially if the price position is on bearish trend.
  3. If ever na mag-bounce, do not hold the stocks in your portfolio and always sell that bounce.
  4. Kung nakabili ka sa pinaka-itaas na price, do not hesitate to cut your losses. If ayaw mo mag-cut loss, magiging long term investment yan for sure. And most likely matutulog ng matagal ang pera mo. :)

Oh by the way, I am sharing my chart readings and analysis every week in IGAN Stocks Reco!You can subscribe to it and I am pretty sure that it will help you with your trades.

Support and subscribe by going on to this LINK: IGAN!


It will help you with your trades for sure lalu na kung isa kang NEWBIE sa pagte-trade o kaya naman ay busy ka sa work. Subscribe ka, at hindi ka magsisisi. :)

You can even win this for FREE by filling up the form below! Every week, 3 lucky subscribers ang mananalo ng 1 month IGAN Stocks Reco. You might be the next winner!



Or why not buy my trading kit and get my latest e-book entitled The Cautious Stocks Trader


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