Trade ideas are provided as a guide only. Market Matters is not investing in these ideas as we do our other suite of portfolios available here. If trades are updated through the week, these updates will be advised in the morning note and will be flagged as an alert on the home page of the website. Separate emails or SMS messages will not be sent for Shawns Trade Ideas. The ideas are General in nature only.
When we look at trading ideas, there are two distinct sides of the equation, with the core numbers determining viability:
- if we have a 3:1 risk/reward profile and a perceived 50% chance of success, the trade makes sense.
- Similarly, the trade makes sense if we have a 2:1 risk profile but a perceived 75% chance of success.
This morning’s trading idea is closer to the second point, with the backdrop of a bullish market and renewed interest in regional banks, the driving force.
- We like the risk/reward towards Bendigo Bank (BEN) sub $12.50, targeting $13 with stops under $12.25, i.e. 2:1 risk/reward.
Buy BEN under $12.50, targeting $13
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