#9 Google (split play) (speculative)
!Please read!
This is a speculative play for the incoming 20-1 split in July. Historically, prices tend to go up significantly upon split announcement (think Tesla and Apple). Be warned though, there would be volatility and it is not a straight one lineup. Make sure you have holding power.
If you already have an existing position in Google, Apple, or Microsoft (as per "3 big tech video"), it is best for you to skip this trade. Congrats if you had google prior to the result announcement news.
If you have Snowflake Short, this long trade is recommended as an opposing spread trade to Snowflake short. This will be our first step to "Long the strong Tech with good earnings and short the weak Tech that is Loss-making"
Price will gap up to 3000 on today's opening as per post-market price. This gap up can be chased but it is recommended to take a 1% risk on this first position. You may enter a second position with the other 1% risk if the price fall. Do note not to enter on falling prices, wait for a bullish green candle. 2600 price for lower entry is rough guidance, should price recovers slightly above 2600, it is fine to get the 2nd position too.
Please ensure both positions' risk is not more than 2% of your portfolio.
As Google is a VERY expensive stock, if you're account size is below 30k, you will most likely unable to take even 1 share while still sticking 2% risk rule, much less a double-entry approach ( 2 shares =US$6k ).
As such, you may take only one position (if your account can afford 2% risk on 1 Google share).
Using CFD just to enter this trade is NOT recommended. If you're on CFD just to afford 1 Google Share, you will be taking way higher than 2% risk.
Due to the speculative nature and the current market condition, the TP level will be a reactive one. TP accountment and/or shifting of stop loss will be provided occasionally. However, do note that decisions will be made on a daily price basis. As such, there is no need to stay up late at night to watch the price action.
This is a speculative play for the incoming 20-1 split in July. Historically, prices tend to go up significantly upon split announcement (think Tesla and Apple). Be warned though, there would be volatility and it is not a straight one lineup. Make sure you have holding power.
If you already have an existing position in Google, Apple, or Microsoft (as per "3 big tech video"), it is best for you to skip this trade. Congrats if you had google prior to the result announcement news.
If you have Snowflake Short, this long trade is recommended as an opposing spread trade to Snowflake short. This will be our first step to "Long the strong Tech with good earnings and short the weak Tech that is Loss-making"
Price will gap up to 3000 on today's opening as per post-market price. This gap up can be chased but it is recommended to take a 1% risk on this first position. You may enter a second position with the other 1% risk if the price fall. Do note not to enter on falling prices, wait for a bullish green candle. 2600 price for lower entry is rough guidance, should price recovers slightly above 2600, it is fine to get the 2nd position too.
Please ensure both positions' risk is not more than 2% of your portfolio.
As Google is a VERY expensive stock, if you're account size is below 30k, you will most likely unable to take even 1 share while still sticking 2% risk rule, much less a double-entry approach ( 2 shares =US$6k ).
As such, you may take only one position (if your account can afford 2% risk on 1 Google share).
Using CFD just to enter this trade is NOT recommended. If you're on CFD just to afford 1 Google Share, you will be taking way higher than 2% risk.
Due to the speculative nature and the current market condition, the TP level will be a reactive one. TP accountment and/or shifting of stop loss will be provided occasionally. However, do note that decisions will be made on a daily price basis. As such, there is no need to stay up late at night to watch the price action.
