FDX
🔄 FedEx presented a buy signal on Thursday as it moved above its 21-day moving average, prompting an entry into the stock.
📉 However, the stock reversed the next day (Friday), falling back below the 21-day moving average, triggering an immediate sell signal based on the pre-defined strategy.
🛡️ This trade exemplifies the importance of strict discipline in trading: adhering to entry and exit rules (like moving averages) even if it results in a small loss, to prevent larger drawdowns.
@ClaveBursatilTV:
“One that gave us a buy this week and we sold again is FedEx, and I bring it precisely so you can see this, right? Also as part of the methodology, one has to be disciplined and has to be strict, not emotional, not speculative. FedEx gave us a buy on Thursday because of the green candle, it got above the 21-day moving average, we entered. You can enter with the 21-day moving average or with the 30-day simple moving average, I explain this in the seminar, I mean, in the in-person class, why yes one, why yes the other. Well, not to get too far off track now, but it lost the 21-day moving average again on Friday. So here you have two options: Thursday could have been a feint, or Friday could have been a feint, we don’t know. Well, and here’s the beauty of technical analysis, of the methodology: I don’t care to know, what do I care to know which was the feint? If I bought on the 21 and it lost it, I sold, goodbye, done. As if you were a robot. If you established that the stop loss was the 21-day moving average, we established the 21-day moving average in this trade, goodbye, sold, done. ‘But you lost money.’ That’s fine, but if this goes way down, I won because you would have lost how much? And besides, I injected this liquidity into another buy alert that went up, so you didn’t lose money. I mean, if you look at it statically, yes, you lost money, but if not… Now, would it have been better not to enter directly? Well, but with a crystal ball or knowing the future, let’s say, it’s impossible, right? How do we know this wasn’t going to keep going up? So what I want to bring with this and show with this is: we entered on Thursday, we exited on Friday, we lost money, we lost money, yes. Now, you have to be methodical, and you have to be disciplined. This way, you never end up holding a position at -20%, -30%, -40%.”
Watch the exact part of the video where @ClaveBursatilTV talks about FedEx here:
Watch the video on YouTube
Read more articles analyzing FedEx (FDX) at the provided link. FDX stock.
