How to make $1,000
While not foolproof, the candlestick pattern J-Hook is my favorite.
Of course it would be nice to make $1,000 just buying and selling one stock each month and here is my plan for the stock GPL for trading on Monday, May 9th 2016.
The chart with the J-Hook pattern, it's a visual thing
Buy Target of 1.86
Sell target between 2.10 and 2.20 Sell just below the 2.25 top
Now, I need to decide How Much to Invest, remember the target is to make $1,000
Desired investment range is $5k - $10k.
Goals are to reach $1k with the least investment, buying @ 1.86 and selling range of 2.10 - 2.20
I chose 3,000 shares as a starting point incremented by 500 shares. The initial result is selling at 2.20 to make $1,000.
A snapshot from the Buy Shares Page of the E.T.P.C. tool..
A larger view shows the Number of shares between 3,000 and 4,500 to fit my desired investment range.
But which one to choose? How many shares to Buy?
The answer is a matter of preference as the selling prices vary between 2.09 and 2.20 (the high end)
I would rather:
a selling price nearest to 2.10 and the range of 2.09 - 2.11 both fit the bill.
buy in even numbers of 100 shares. A guess that 4,250 would be the perfect number of shares.
Next, I look at the selling price differences:
2.20 minus 2.15 = .05 cents
2.15 minus 2.11 = .04 cents
2.11 minus 2.09 - .02 cents (not worth it as the investment requires +$900 more
However, between 2.20 and 2.11 is a .09 cent drop in selling price - to make the same $1,000
$7,4k investment is within my range, with a selling price of 2.11 (near the lower range selling end price)
That's It ! Buy 4,000 shares
In reality using the E.T.P.C. tool it only took a couple of minutes to figure out.
Now, if tomorrow the market will agree with me I WILL BUY GPL around 1.86, though I may have to make real time adjustments.
A guess of 4,250 shares was right on the money. I changed the parameters and Viola!
Good Trading to All!
Remember to Have Fun!