Calm, calculating and cool – the mere mention of this tiger’s name, struck fear throughout all the animals in Disney’s classic Jungle Book movie. Stalking his prey across the entire jungle was a terrifying notion for his victims, but we traders, can learn from his disposition!
Looking at Disney’s (DIS) chart provides an example of how patience and “stalking” can lead to very good results. Since the end of March, I have been following Disney’s lackluster price action, ready to take advantage of the opportunity of a price breakout. As you can see, the price has been in a slow uptrend, albeit uninspiring. And, this is the point where average traders tend to lose interest.
Many times, our goal as traders, is to look for securities that can be taken advantage of and traded quickly. That said, oftentimes, the best trades come when EVERYONE else turns their focus elsewhere. And that is exactly what had happened in Disney’s case. If you, had this stock in your watchlist, then you would have been able to take advantage of a $13.00 price jump in one (1) day as of April 12th! This is a prime example of where your analysis MUST also scan for non-trending securities.
The question remains: How do you know what stocks to search for and when to turn your attention elsewhere? More importantly, how can you set up a system where you can profit from your analysis?
I can help you answer that through consultation; contact me today!
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