eighteen cent bargain, page-12

Trade the Trend!

you want fundamentals go and buy blue chip dividend stocks.

these stocks all move on price action.

they are easily manipulated with low volume.

if you are investing in speculative stocks for fundamentals you are just punting.

Trade with stop losses....minimise losses maximise gains.

If Roy falls below 17 cents... watch the day traders who have been accumulating for the last 1 month or so head for the exit.

in my opinion ROY will test resistance which 18.5 cents. if it can break 18.5 cents then next it should move above 20 cents reasonably quickly.

Example...

See MAK - it retracement from 44 cents back to below 40 cents...

AXT - big volume above 9 cents as traders looking at breakout.

Trend is the friend, try and catch it early.

however at the end of the day you at the mercy of the market. if the DOW drops 2% overnight... all goes out the window and speculative stocks head south