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The 5050 Strategy Gives A Plan for Profit
Dr. Schaap created The 5050 Strategy to help anyone get started understanding the stock market and on the right side of the trade. The strategy gives a plan of when to enter and where to place the stop loss. You always know the risk and can maange what risk you are willing to take.
This daily chart of Great Xpectations™ SAFM shows a 40% gain from the daily 5050 entry (green arrow). The stop loss is always under the 50 moving average. Price is making lower highs and RSI 20 agrees, also making lower highs, so a profit can be taken at any time but the stop loss still protects some of the gain.
Always Manage the Risk
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