Even if you knew nothing about the company, could you see a way to trade it?

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Even if you knew nothing about the company, could you see a way to trade it?

The post Check out this chart… appeared first on Optionsnoob.com.
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The current volatility in the markets will shake out a lot of weaker companies and sadly, many will not come through.
The flip-side of this is that strong companies will become even more dominant.
Look to find this strength in the market. Look to those companies that are already in dominant positions and will be able to secure that dominance through the current upheavals.
Strong companies will have resilient stock prices as investors fly to quality.
Some sectors to consider in the current context:
Tech – that benefits from remote working.
Consumer staples – people still need to eat and they will be eating at home even more going forward.
Ecommerce – just got a massive boost. People who had never shopped online before are getting involved for the first time.
Here are a few ideas that I have been working with and will be looking to develop over the course of this year: the permanent portfolio.
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Paypal, Visa or Mastercard?
And the answer is PAYPAL.
Because PAYPAL is perfectly positioned to benefit from a massive increase in online shopping but isn’t exposed to credit card debt defaults.
Happy to hear your thoughts in the comment section below.
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Given the volatility in the US oil markets and the madness in WTI futures in particular, I have turned my attention to oil in Asia, to ride the normalisation in the price of oil and the earlier end of lockdowns in Asia. Wuhan already has returned to traffic jams…
I have been easing into some strategies to accumulate Chinese oil majors this week and will continue next week. They are massive state-supported companies in oligopoly positions and they are trading right towards the bottom of twenty year trading ranges.
Options operate slightly differently on the Hong Kong stock exchange. One main difference is that lots are not the standard 100 shares that you might be used to dealing with. Different size stocks have different lot sizes. For example, Petrochina has lot sizes of 2000 shares, while MTR has lot sizes of 500, so pay attention if trading options!
So this is phase 1 of the ongoing 2020 strategy that I am working with.
Playing a normalisation of oil and end of lockdowns hypothesis for the next few months before exiting into a more balanced growth portfolio.
On a side note, I know that it can be difficult to focus on these things with all that is going on in the world and the human tragedies that are unfolding on a daily basis but I genuinely find that it helps me to stay positive, to keep working, keep thinking creatively and to keep trying to look forward to life beyond what we are all facing now in our different ways.
It is a difficult time to navigate all of the volatility in the world on so many fronts way beyond the financial, so look after yourself and keep yourself out of harm’s way so that you and your families live to fight another day.
Stay safe.
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This is a model response for managing a pandemic and for managing an end to lockdown…
Have a good read and a long hard think and stop flapping around.
This isn’t hindsight either.
This message has been pushed out across the world from Hong Kong since Chinese New Year when Hong Kong schools closed there doors but there was no lockdown as such.
In a nutshell:
The government needs to make effective decisions, support the medical effort and manage tracking and isolation.
Bizarre, headline grabbing strategies are not the order of the day.
The community behaves responsibly in a way to minimise transmission to protect themselves and others.
Happy to continue the discussion in the comments below if anything is unclear.
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Watch on YouTube here: The Slow-Motion Train Wreck (w/ Nouriel Roubini)
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Watch on YouTube here: Certain Recession Mutating into Possible Depression (w/ Nouriel Roubini)
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I’m trying to streamline how I get information out to both members and non-members, so that you can get the value that you are here for, at the level that you want it.
I’m developing the use of email, website pages and posts to provide a richer picture and deeper documentation of the broader strategy principles alongside trade execution.
So for example, in terms of strategy, I am currently looking to ride the oil recovery over the next six months or so and then rotate into a more balanced portfolio. That is the big picture strategy and exactly how I am executing on this is being documented here. This is probably one of the most useful resources that I am currently building as it seeks to blend strategy, real time trade execution with learning resources to develop your understanding of how theory can be put into practice. It’s a real time live case study. I welcome your comments on the page to help to develop out collective knowledge and understanding.
It is important to remember that my approach is in line with my own risk preferences and view of the world. You still have to figure out those for yourself and trade appropriately in a way that you are comfortable with.
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Watch on YouTube here: Will equity markets ever roll over again? | The Big Conversation | Refinitiv
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Watch on YouTube here: Covid-19: how bad will it be for the economy? | The Economist
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We are looking to try to support local or international charities who are struggling for revenue at the moment due to the C-19 crisis.
We don’t have a magic bullet but we are looking at ways to develop sustainable funding and revenue models for partner charities.
Just hit the green Whatsapp button on the right or email steve@optionsnoob.com to see how we might be able to work together.
Steve
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Going to be an interesting few quarters for oil…
https://finance.yahoo.com/news/global-oil-cuts-seen-falling-034657034.html
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https://www.facebook.com/639610092/posts/10163703558630093/?sfnsn=mo&extid=m1uUEPIPKjkZKE1c&d=n&vh=e
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The oil price and oil stock prices have been smashed to pieces this year through the double whammy of the C-19 pandemic and the Saudi/ Russia oil price wars.
Oil could still go below USD20 a barrel.
But this is one of those times where I am willing to load up.
Have a look at the price action for oil and just about any oil related stock that you care to mention on 2 April.
Just the mention of an end to the oil price wars had oil companies spiking across the globe.
Oil will eventually benefit from the end of the pandemic, the global economic recovery and the end of the oil price war.
To get to the point:
I am looking to get long oil whenever it dips down here.
I’m spreading the love across oil companies listed in Hong Kong, the UK and the US.
I’ll start to get long down here and when I have loaded up, I’ll just wait.
I’m expecting USD40 oil again in the not too distant future. It might not be this year, but it is coming.
As lots of unprofitable and costly oil operations have been closed down or mothballed and global oil demand comes back, USD20 oil won’t last for long.
So, I’m stocking up on oil down here and the lower it goes, the more I’ll buy.
As ever, you need to make your own decisions.
This is how I play. You have to find your own way to play. A way that you are comfortable with.
A simple way to play is to just start to buy some XLE (a fund full of oil majors) and look to exit some time next year.
Other approaches are available.
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Pretty amazing what they have put together here:
https://chp-dashboard.geodata.gov.hk/covid-19/en.html
Click through the arrow at the bottom right for lots more analysis.
This is a how you track a virus outbreak…
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We have always had community at the heart of what we are building here.
Our platform was born out of trying to support the community in Nepal following the devastation of the Nepal earthquake.
Supporting charity, the community and youth in particular is at the heart of what we do.
We are currently looking to support and partner with the following:
Charities
Sports Clubs
Entrepreneurs
Independent Financial Advisors
Potential Brand Ambassadors
Email steve@optionsnoob.com or hit the green Whatsapp icon on the right to chat about the possibilities.
Even if you don’t exactly fit into one of the categories above.
Let’s make good use of this lockdown situation.
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Watch on YouTube here: Trading Protective Put Options
This is a simple hedge that can be put into place for an existing position to protect from significant downside.
Contact: steve@optionsnoob.com or hit the green Whatsapp button on the right if you would like to discuss further.
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Watch on YouTube here: How Iron Condors Can Be Used To Generate Income
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Watch on YouTube here: Trading a Cash-Secured Put Options Strategy
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Watch on YouTube here: Trading Covered Calls to Generate Income
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