I know a lot of you out there are probably doing it tough but now is the time for more than even for the tough to get going. Time for a reality check and some plain old commonsense. What do you really know about your stock?
Go back 3 years and check these statistics
What range has it been known to travel in a month? (look for excesses)
What range did it cover last month?
What range has it been known to travel in two months to a quarter?
What range did it cover last quarter?
Remember the last 3 months on the weekly chart are the most important!
October was the start of a new quarter.
Example for Wbc
Ranges high to low
Historical monthly range Nov 2001 - $2.02
Last month Sep 2005 $1.57
This month Oct 2005 $1.24
Historical quarter range Oct 2001- $3.48
Last quarter Sep 2005 $2.23
This quarter Oct 2005 $1.24
Well so what, big deal, what does it mean and how is this useful?
Worst case scenario for Wbc this month - could go from its high of $21.48 to a low of $19.47. What a bargain and with a dividend too!
Average scenario for Wbc this month - could go from its high of $21.48 to $19.91!
Now have a wee think about all the possible trading possibilities.
Of course this is all just guess work and no one should take it as gospel. Its just one more way of looking at things. Do your own research and make the truth of it your own.