My Take on MUX.TO
It’s so interesting reading most folks sentiment on various chart levels, what they mean, and how to trade them. Obviously when prices are falling our human emotions tell us we should be worried about further declines. But does that mean you should not try buying stocks on pullbacks to what appear to be supportive levels when they are undeniably in an uptrend??? That’s my entire approach to trading in a nutshell (both directions)….you simply need a close exit when your underlying premise of support (or resistance) is no longer valid. Survive to trade another day. The alternative would be to chase prices as they run higher. That only works if you’re a very short term momentum trader and I know we have at least a couple on here but I suspect the vast majority of you are not day traders or even 1-3 day swing traders. You’re probably like me and want to ride the meat of the trend as long it lasts, perhaps even years.
Here’s my take on MUX.TO. I would have bought it today. So I ask….if you don’t buy today, when do you enter a long trade on this stock as an investor?
Awesome chart and analysis! This is what I was commenting on yesterday, very nice job of putting it out there. Thank you!
Thanks Randy. Think about it, if you’re not buying support, when do you rejoin the uptrend? After a new swing high is made? You risk missing out on 2/3 of the bull leg that way, possibly exiting your trade at breakeven once you’ve determined that some hyper-short timeframe TL has been violated. Or maybe you set a mechanical trailing loss which isn’t based on support or resistance at all. If you set up trading rules like this it’s virtually impossible to stay in the trade for more than a few days at a time. If you are daytrading to pay the bills that approach may be fine, I get that. You never hit a home run but most of the time you are hitting high percentage, albeit tiny gains and having to execute a lot of trades. Again, I don’t think most of us are professional daytraders.
Thanks Mark- I was impressed when you posted you caught some MUX at $2.19- also one of my largest positions.