Technically Speaking
CVX is holding the $100ish pivot level. The longer it holds the more likely the next move will be to the upside.
Fundamentals
Here is a company summary.
What to do?
First, is this a trade or a long-term holding? What is YOUR time frame? You have to decide.
The R/R favors the long side, in my opinion. A long position here, stopping out under 96.00.
Checklist
Should I buy?
* Is this a technical trade or part of my long term holdings. Establishing a time frame is very important.
* Is it trading at an important technical level that is obvious to all market participants?
* Is the R/R in your favor?
* What is the likelihood this company will either go bankrupt or it's products or services become obsolete?
* How much debt do they have?
* If heavily indebted, how much is coming due in the next 3-5 years? Can they cover their debt payments based on reasonable analysis?
* Will their product or service become obsolete? This really is too hard to say, too many things looked obvious in hindsight, think Blackberry. However, I think it is constructive to think about, especially if you are planning to hold a stock for the long term.
Risk
* For individual securities, risk no more than 3% as a starting position. You can always add later.
* Write down a price level that you will consider liquidating all or part of the position.
* What is a reasonable price target?
Execution
* After going through the checklist above, are you still willing to risk your money? If yes, TAKE THE TRADE.
OVER THE LONG TERM, THE WAY TO WIN IS TO HOLD ONTO YOUR WINNERS, AND CUT YOUR LOSERS. IT IS AS SIMPLE AND AS HARD AS THAT.
CVX is holding the $100ish pivot level. The longer it holds the more likely the next move will be to the upside.
Fundamentals
Here is a company summary.
What to do?
First, is this a trade or a long-term holding? What is YOUR time frame? You have to decide.
The R/R favors the long side, in my opinion. A long position here, stopping out under 96.00.
Checklist
Should I buy?
* Is this a technical trade or part of my long term holdings. Establishing a time frame is very important.
* Is it trading at an important technical level that is obvious to all market participants?
* Is the R/R in your favor?
* What is the likelihood this company will either go bankrupt or it's products or services become obsolete?
* How much debt do they have?
* If heavily indebted, how much is coming due in the next 3-5 years? Can they cover their debt payments based on reasonable analysis?
* Will their product or service become obsolete? This really is too hard to say, too many things looked obvious in hindsight, think Blackberry. However, I think it is constructive to think about, especially if you are planning to hold a stock for the long term.
Risk
* For individual securities, risk no more than 3% as a starting position. You can always add later.
* Write down a price level that you will consider liquidating all or part of the position.
* What is a reasonable price target?
Execution
* After going through the checklist above, are you still willing to risk your money? If yes, TAKE THE TRADE.
OVER THE LONG TERM, THE WAY TO WIN IS TO HOLD ONTO YOUR WINNERS, AND CUT YOUR LOSERS. IT IS AS SIMPLE AND AS HARD AS THAT.
