60% in Eight Months!

By Murray Dawes, Saturday, 17 February 2024

Learn how to plan a trade from entry to exit

In today’s Fat Tail Daily, Murray tipped Spotify Technology [NYSE:SPOT] in June last year and it is up 60% in eight months. In today’s Closing Bell video watch Murray explain his reasoning behind the trade and how he would manage the position from a risk management perspective.

I looked through dozens of charts looking for a market that was doing something interesting this week and came up empty handed.

So I thought it would be a good opportunity to make a video that would educate new Closing Bell viewers about the way I approach trading and investing.

I’m sure some people who watch my videos for the first time are left scratching their heads wondering what on Earth I’m going on about.

If that’s you, then I ask that you spend the time to watch today’s video so you can understand some of the nuts and bolts of my method.

On 3 June last year I sent out a Closing Bell titled ‘A US stock to add to the bottom drawer’. That stock was Spotify Technology [NYSE:SPOT]. I’d recommend watching the Closing Bell from 3 June before checking out today’s update so you can see what was said when I recommended the stock.

I only gave the tip to people who watch Closing Bell because I don’t trade international stocks in my trading services.

Spotify was trading at US$153 at the time and I said that my first profit target was US$244.

Spotify hit $244 last week, so I thought it made sense to revisit the trade and look at my reasoning behind the tip and why I thought the odds of hitting US$244 were high.

I also use a risk management technique that involves selling 1/3 of a position at the initial target and adjusting the stop loss to a breakeven level. There are a number of reasons why I do this which I explain in detail in the video above.

So if you remain a sceptic of technical analysis and think it’s all hocus pocus, hopefully I can convince you that technical analysis is a great risk management tool that helps you to plan trades in a methodical manner.

And don’t forget to ‘like’ the video on YouTube!

Regards,

Murray Dawes Signature

Murray Dawes,
Editor, Retirement Trader and Fat Tail Microcaps

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

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Murray Dawes is our resident expert trader and portfolio manager. He is a former Sydney Futures Exchange floor trader who went on to design custom trading systems and strategies for ultra-wealthy clients (including one of Australia’s richest families). Today, his mission is to help ordinary Aussie investors make profitable investments, while expertly managing risk.

He uses his proprietary system for his more conversative and longer-term-focused service Retirement Trader…and then applies the same system to the ultra-speculative end of the Australian market in Fat Tail Microcaps (this service is strictly limited and via invitation only).

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All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.