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Originally Posted by Butterfly the difficulty is not the short term gains, but the long term ones |
I have a couple of strategies in mind, one of which is the following
The thing about MOS (and POT) is that as they trend up, every now and then they like to correct back to their 50 day moving average. This presents another great opportunity to make extra $$$$ by banking the gains on the upside and then short selling (profit from the drop in value of a stock as opposed to rise) the fall back to the 50 dma
Check out the 9 month chart, look at the RSI line at the top. If you had sold short each time it rose above 70 and then covered a week later you would have made money.
I did it for the first time when it topped out around 17th June, i didnt make much because I got nervous and bottled out but on this thread the money aint real so it doesnt matter if things go tits up
Long term, I'll keep repeating this cycle until the trend changes.