A stock pump and dump operations are used by unscrupulous people to make a lot of money in the stock market. Learn about their dirty game and become a smarter investor.
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When I first started investing way back in the late 1990’s, there weren’t many options for me to choose from when it came to brokers.
I’ve talked in depth about mutual funds on this blog – case in point is the mutual fund basics post a few weeks ago. But what I haven’t talked to you about are exchange traded funds or ETFs. Exchange traded funds have grown in popularity over the past few years. This post will walk you through what they are and why you should consider investing in them.
The price of crude oil has been in a downtrend now for about 3 months. With this decline oil stocks such as Canadian Natural Resource Ltd (USA) (NYSE:CNQ) have also come down in price. In fact, this equity has fallen roughly 13% from its peak back on July 1. However, the thing that really interests me is the pattern that is being formed on the daily chart. It is a head and shoulders pattern which could see this stock fall all the way down to $33.75 area. While that would be a tremendous return, the most interesting aspect of this trade is the risk reward. Canadian Natural Resource Ltd (USA) (NYSE:CNQ) is hovering right around the neck line, so any close above the line and we stop out for a $0.50 loss. Compare that to a drop of almost $7.00 and you have yourself an amazing return for very minimal risk. Trade set ups like this one are what separates the profitable pro's from the money losing amateurs. So ask yourself which one do you want to be?