One mans loss is another man’s game… very true. That also is true when it comes to trading.
You will often find that occurrence in various market sectors [often commodities] Gold could be down and corn could be up as a hypothetical example.
I have been following the samsung saga and expecting a really big slump but that hasn’t happen as yet… even though the price is down.
Sometimes though, trading a stock that has so much negative press doesn’t result in a free fall move that you are expecting.
That doesn’t mean that the benefits cant be seen elsewhere in the market.
I emailed Vince this week and asked if he was going to sell samsung ? He explained to me that in these situations it can be wise to trade the competitors stock.
That made perfect sense to me.
Stocks don’t always do what you think they are going to do, that’s for sure. All the charts, indicators and even seasons can be in place and the move you think is going to happen doesn’t.
Trade the competition
But in these scenarios where a company is facing some sort of catastrophe… as Samsung is with their mobile phone recall, you can look at trading one of their rivals as money can flow into the rival stock as it will be seen as a more stable option.
In this case we can look to trade Apple over Samsung.
I do like the look of Apple anyway, and this could be a somewhat super safe trade [if such a thing exists] so I’ll be looking to trade and profit on this.
You can actually trade some shares on binary now, even though only on the short term, it is a way to get some exposure to the markets and practice. You’ll know your total profit and loss in advance also.