Written by Rick Ackerman, Rick’s Picks
This is the first appearance of a marijuana stock on the touts list, but I can assure you it won’t be the last. I plan to give the sector increasing coverage as it continues to mature. In that regard, I’d informally mentioned a potential ‘mechanical’ trade taking shape a week ago in Weed, Inc (OTCPink:BUDZ), a firm that aspires to be a giant in the business as cannabis becomes increasingly legal across the U.S.
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On Monday, a subscriber reminded me of my guidance, but I discovered that the trade had triggered earlier in the session, putting us a step behind it. What I will therefore suggest is that you paper trade this recommendation as it evolves, the better to familiarize yourself with the ‘mechanical’ entry tactic that is being used with growing frequency by Rick’s Picks subscribers to take advantage of enticing opportunities that require tight management of risk.
In this instance, for purposes of paper-trading, I will record 400 shares acquired for 10.01 and tie them to a stop-loss at 6.95.We’ll plan on exiting half of the position if the stock rallies to the red line (13.06) without dipping below 6.96 first. The remaining 200 shares would be held for a shot at 19.16, the rally pattern’s ‘D’ target.
The pattern is fairly compelling as far as ‘mechanical’ set-ups go. However, there are particular risks, since BUDZ’s price swings are every bit as wild as Bitcoin’s. As such, trading the stock will put the ‘mechanical’ entry tactic to the test. If you’re interested to see how we do, and in adapting the Hidden Pivot Method to your trading needs, I invite you to follow along.
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