GL fell on bad news and started its recovery in the after-market hours. The idea is on the chart.
It shows how price action can be manipulated and how retail traders can play the manipulation.
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Early on GL recovered another 8%- stop loss now above break even. 10@ of the
position closed to realize some profit. Remaining 90% at risk but with a stop loss
above break even so the trade is now risk free.
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GL moved up further. Looking for more.
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Comment
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Comment
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GL $59.20
Massive -50% unwind on this name after a notable short research firm accused them of insurance fraud.
The stock had started getting bought back up late day Friday. We could potentially see more technical bounce early next week.
Please double-check that no more follow-up news on the short report is revealed next week. If new negative report is published, the stock will most likely sell off even more, making it undesirable for longs.
IF the stock can break through highs from Friday, look for potential trend join long setups to the upside.
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40% gain in 8 days an excellent return with minimal effort. Holding full position and looking for more.
This company actually is committing insurance fraud on a massive scale. This is not the first time that fraud has been revealed either. See Business Insider expose on fraud and sexual abuse of employees.
AwesomeAvani
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@Gameonanon23, I am trading the price action not investing in the company. it's all about making money off the volatility ( in a nutshell).
AxiomEx
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Well put
resident1155
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If a V shaped recovery was in, it would have already fully recovered imo. And the recovery is looking long in the tooth. Why would investors take longs here with substantial downside risk when you can just sit in CDs? Makes zero sense to me
AwesomeAvani
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@resident1155, It is a risky trade with high potential reward on the upside. Bough the dip. Have been paid quite well and more than several years of interest from CDs BTW.
resident1155
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High potential reward? You must be assuming it goes back to $130 a share and there’s zero chance of that happening. The reward is a lot lower at these prices and the risk is equally high. If you’re gonna gamble on this, use tight stops is all I’d say.
AwesomeAvani
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@resident1155, yeah obviously when you take risky plays you mitigate the risk unless you are a fool. To go from 75 to 85 is a 12% gain realized. It will take a CD 2.5 years to match it. Another rule I follow- If I feel for some reason I am mathematically impaired on a temporary basis, I will not trade. Since I am fluent in mathematics including highr math, simple math is never a problem. My bank and trading accounts are well aware that I have an extreme level of math fluency. ( BTW If you trade well, trade often. If you do not and cannot navigate risk, stay on the sidelines and watch.)
AwesomeAvani
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@resident1155, On the contrary once a stock is far down in undervalued territory the higher probabilities mathematically are that it will rise. In trading this is called the rubber band oscillator or reversion to the mean. It is all mathematics with a little psychology overlaid. Not really that complicated. I bought at the bottom at $45 take a look at current valuation and do the math- the comparsion to a CD is log 2 or 3 on a daily or weekly basis considering a CD days 0.01% daily compounded more or less.