VISA TRADE

Visa (V) is giving us a low risk trade right now, take a look at the setup.

Visa (V) made a new lower low intraday this morning, this is usually a decent area to enter a trade, this one would be a short trade after the diminishing volume bounce it saw the last week or two. The Stop would be above the recent high put in yesterday at $71.80-that gives you about $1.15 risk per share which isn't too bad so long as you use position sizing to make sure your risk on the trade does not exceed the limit expressed as a % of portfolio which you are comfortable. Usually I use 2% of portfolio, but right now I may lower that risk to 1% of portfolio. You can always add shares if the trade continue to work in your favor.

If you need a refresher on the risk management aspect that will in the long run not only allow you to survive the markets, but thrive in them, here's the link to the article I wrote on risk management.