Sometimes the market bring us amazing opportunitiesDollar Tree NASDAQ:DLTR is bringing us an historical buy opportunity.
The $60 zone has been a major support since 2016 and now we have tested it twice. When this happens there are 2 scenarios:
1. A very big rally demonstrating that this support level is still strong (+40% minimum opportunity) .
2. A fast break downwards facing a very bad situation and a continuation of the bearish situation.
How to Trade in this situation?
There is a simple strategy to handle the risk in this situation where a win is almost sure.
If you simply expect 100% of the position to return a 40%, you can be stuck here for a while and also lose your 5% as a Stop Loss.
Try this:
All positions have a 5% stop loss.
50% take profits at 5%
50% take profits at 40%
This way, with a very very high probability your 1st half will make enough money (5%) to cover the Stop of the live position.
So, you are in a risk free trade probably in just some days.
Worst case?
You keep losing a 5%!
Want more trades with great risk return?
Feel free to follow for daily trades! If you are still reading, thank you :)
