I'm still relatively new to SPACs so take this trading plan with a pinch of salt, and any feedback is welcome.
I already have a comfy position in IPOC (see my previous chart which was one of my finest) and banked a 40% + gain so far with very little downside.
Now we can see the price potentially finding a rather thin support level and targeting a move upwards.
Plan:
+ Gradually add to position on 4 Jan with a stop loss just under a local support (possibly the level we're seeing today - let's see how we go)
+ Sell majority of position before the ticker change - 6 to 7 Jan. You can see my sketch of how I think price might move - targeting $25
+ Hold a smaller position after the ticket change to see how price reacts, with a fairly tight stop
Now what are the risks?
Well, this is based on a few things: merger being approved, no market maker front-running or other nonsense, hype staying at current levels.
I'm going to keep an eye on the chart and keep adjusting my stop loss. One thing I'm getting much better at is manually adjusting my stops and frequently rethinking them.
There could be a market-wide move that hurts this strategy, especially when I am so far from the $10 NAV. I need to keep an eye on the wider market and any catalysts that could hurt me.
I might not make as much profit as if I held through the ticker change as there's bullish sentiment on Clover Health. I can live with this - one reason I trade SPACS is the downside protection, and I'm in it for gradual profits and long-term success.
I'm new to SPACS so there might be something I am missing here. It's more based on theory than experience.
One thing I MUST do is sell in batches, rather than in one go - don't try to time the market. I'll ladder out before the 8th.
Let's see how this goes! LETS GET AFTER IT
I already have a comfy position in IPOC (see my previous chart which was one of my finest) and banked a 40% + gain so far with very little downside.
Now we can see the price potentially finding a rather thin support level and targeting a move upwards.
Plan:
+ Gradually add to position on 4 Jan with a stop loss just under a local support (possibly the level we're seeing today - let's see how we go)
+ Sell majority of position before the ticker change - 6 to 7 Jan. You can see my sketch of how I think price might move - targeting $25
+ Hold a smaller position after the ticket change to see how price reacts, with a fairly tight stop
Now what are the risks?
Well, this is based on a few things: merger being approved, no market maker front-running or other nonsense, hype staying at current levels.
I'm going to keep an eye on the chart and keep adjusting my stop loss. One thing I'm getting much better at is manually adjusting my stops and frequently rethinking them.
There could be a market-wide move that hurts this strategy, especially when I am so far from the $10 NAV. I need to keep an eye on the wider market and any catalysts that could hurt me.
I might not make as much profit as if I held through the ticker change as there's bullish sentiment on Clover Health. I can live with this - one reason I trade SPACS is the downside protection, and I'm in it for gradual profits and long-term success.
I'm new to SPACS so there might be something I am missing here. It's more based on theory than experience.
One thing I MUST do is sell in batches, rather than in one go - don't try to time the market. I'll ladder out before the 8th.
Let's see how this goes! LETS GET AFTER IT
Trade closed: stop reached:
Unfortunately and regrettably, I was caught by the stop hunt that occurred down to the 15 range.
Kicking myself for being so stupid.
Kicking myself for being so stupid.
Comment:
MAN MAKES PLANS
AND GOD
LAUGHS!
AND GOD
LAUGHS!
The problem here is that while all made sense, technically, I don't know the market well enough (compared to crypto).
So while I read the chart well, I didn't read the sentiment or market players correctly.
For this reason, I'll default back to my previous SPAC strategy... buying in 10-12 range only (13-14 at a push) and buying standard-sized positions.