I just bought 5 stocks in the Greek stock exchange today. 4 out of the 5 trading orders have been executed, while the one remaining is still in OASIS system waiting for someone to match it at the time of writing. I know that Greece is not doing well during the last months, since I do live in Greece but I believe the so called financial crisis does create opportunities. I always have in mind that whenever someone loses money, someone else must be winning it! Now, which Greek stocks attracted my interest?
First of all I should note that I’m not that happy trading the Greek stock market. The commissions are through the roof (about 0.5% per trading order without cap) and the stocks behave rather peculiar. However, instead of keeping the money sitting in a bank account, I prefer investing them in any way, and stock market is an investment, although it can lead to losses I wouldn’t experience if I didn’t bother. Ok, maybe the Greek stock exchange isn’t my best option, but I don’t want to invest all of my money on the same investment, I am a fan of diversification. For that reason, I have divided my whole capital into small parts and invest each part in a different investment tool. Therefore, a part of my trading capital is going to be invested in the Greek Stock Exchange, like it or not! The other parts are invested in US stocks, Forex and other financial products, mainly through Interactive Brokers.
Returning to the point of the article, I’ve decided to buy 2 banks and 3 other companies’ shares. Let’s take a look at the trading graphs of these stocks.
The ETE stock chart (National Bank of Greece) shows that the price is currently at the bottom line of the Bollinger Band indicator and MACD is trading upwards or seems like it at least. Additionally the stock has hit the lowest price of the last 2 years, indicating a major resistance level, that is also useful for setting my stop loss. If the stock’s price falls to 8.70 I’m out and I lose 1% of my capital (I entered at 8.98). Obviously my take profit point is at the moving average at about 10.00, although I would wait for a candlestick formation before I exit the market, because the stock might reverse its long term downtrend. In that case, I will be looking to increase my position and take home some nice profits.
The same way of thinking is going on at the next EUROB stock chart. This is Eurobank’s stock chart, another well known bank in Greece.
Then comes the PPC stock bar graph, which stand for the Greek Power company. This time the stock is obviously trending in a channel and although I could have waited for a breakout, I prefer trading the highs and lows of the channel. The last bottom is used for my stop loss at around 11.40 and the upper band of the Bollinger indicator is my take profit point, no questions asked. I’m either going to lose 1 euro per share or win 1 euro, and I believe my chances are better than 50-50.
The following chart is the SIDE stock chart. Here I’m going for the downtrend reversal of the stock’s price. MACD divergence is there, a bottom fail and some very nice reversal candlestick formations. My stop loss is set right below the previous lowest low about 2.00 and a move from my entry price (2.18) up to 2.80 is quite possible.
Finally ELBA stock bar graph has a lot of signals that indicate the downtrend has ended and the stock is going into a channel, or maybe reversing. Either way I’m trading long and the least I’m expecting is profiting at the upper band of the Bollinger bands. My stop loss is set at around 1.00 and I stand to lose 0.15 euro or win 0.15. Again, I like my chances.
There are some other stocks that I have added in my watch list, given that their charts are quite interesting but I’m expecting a few more favorable signals before I enter more trades.