Anthony Speciale Stock Market Analyst

Better Way to

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MORE MONEY, MORE QUICKLY, MORE SAFELY.

Why Failing to Plan is Planning to Fail

If you fail to plan, you are actually planning to fail. In trading, it’s really just that simple. So, how do we plan to succeed?

Good morning, and happy Monday! I hope you had a wonderful weekend!

Welcome to today’s edition of A Better Way To Wealth!

Failing to plan is planning to fail! In trading, it’s really just that simple.

If you fail to plan, you are actually planning to fail. So, how do we plan to succeed?  

Well, that’s rather simple once you know what it is you’re attempting to accomplish. But it all starts and ends with you!

First and foremost, are we in the right state of mind to trade? Did we just have a fight with our significant other? Did one of our children disappoint us? Did something in our lives derail our zen?

Second, did we get a good night’s sleep? Did we follow through on our morning routine… Make our bed, have a healthy breakfast, hit the treadmill or the workout bike? Are we ready for what the new day holds?

Third, do we have a tried and true trade plan that has proven to be profitable over time? Does that trade plan have all the components needed to build a lifetime of wealth and prosperity for decades to come?

Once we’ve checked off all the boxes, it’s time to get to work. It’s time to sit down at your trading desk, uninterrupted from your surroundings, and decide if it’s time to put your hard earned money to work for you.

Knowing when not to trade is just as important as knowing when to trade. Your tried and true, proven profitable trade plan dictates when it’s time and when it’s not, not your opinion and most certainly not your ego.

Wall Street doesn’t care what you think. They don’t care that you’re risking your hard earned money. They care about taking your money, so they make more money.  

At the end of the day, Wall Street is a zero sum operation. Someone has to lose a dollar in order for someone else to make a dollar. You’ll need to play offense and defense!

Chart Analysis

Visa Inc. (V) has broken through long-term resistance. So, what’s next for this stock?

Daily Chart of Visa Inc. (V) – Source: MarketSmith Inc.

Pictured above are the financials for Visa. There is clear presence of both sales and earning growth quarter after quarter.  

Chances are, if you were to open up your wallet, you have a Visa card of some sort in there!

While all these numbers tell us a lot, perhaps simple technical analysis does too. Let’s take a look at the chart below.

Visa Inc.
Daily Chart of Visa Inc. (V) – Source: TradingView

As you can see, my charts aren’t terribly cluttered with a bunch of indicators or overwhelming amounts of information. The simpler they are, the happier I am!

Now that you have all this information overload, what the heck does it mean and how do we equate it into an opportunity? Visa has just recently closed above its 200-day simple moving average (SMA).  

For starters, that helps! Price has also just broken through an important resistance channel structure. If it closes above it, there’s a great chance to see further upside. 

Continued daily, even more importantly, weekly settlements above the black resistance channel indicated at 230.00 should allow the price to drive higher.  

If price settles (closes) below the ascending 230.00 channel, it would indicate a failed breakout, and this trade will likely not transpire as we would expect it to.

Where do we book profits? That descending blue full channel extension currently indicated at approximately 245.00 would be my first place to start ringing the register.

Where to next… Closing above the descending blue full channel extension at 245.00 sets us on the path to completing the larger macro broad market channel extension.  

From there, the next stop may be a retest of Visa’s all time high at 250.00 followed by 265.00.

After a conservative entry trigger has been identified, I’d place a stop loss under its most recent swing low on a daily time frame chart. 

Understanding this is not a huge winning trade on a percentage basis on the stock chart doesn’t necessarily mean it can’t be in the options market.

The call option I’d consider if this trade does confirm and transpire would be the V June 17 (2022) expiration $250 strike call option (V220617C00250000).

As always, I strongly encourage you to decide for yourself if the above Visa trade could potentially be a fit for your trade plan in addition to discussing it with your licensed financial professional prior to considering buying shares and/or options.

Rules to Live By

“You’ve gotta dance like there’s nobody watching,
Love like you’ll never be hurt,
Sing like there’s nobody listening,
And live like it’s heaven on earth.”
― William W. Purkey

Until next time, I wish you a beautiful and blessed day!

Yours In Trading Success,

Anthony Speciale Jr.

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