Truly enjoy reading your thoughts processes. DK: Removed from your watch list as it held above $30. Does this mean that you exited the position as it rejected $34 or as long as it consolidates above $30, all is good?
A stock comes off my watchlist for one of two reasons: 1) Price movement invalidates the chart pattern (i.e. weak trading in a long setup) or 2) price breaks out (in the case of longs) or breaks down (in the case of shorts) and completes the pattern that I'm tracking.
In the case of 2), if I take a position I utilize my trade management guidelines which are mostly summarized in the "Rules of the Game". I tend to take profits along the way (esp. in a bear market), and also use a 21-day moving average as a stop. I find that allows me enough room to ride the trend while managing losses if price pulls back. Hope that helps!
Truly enjoy reading your thoughts processes. DK: Removed from your watch list as it held above $30. Does this mean that you exited the position as it rejected $34 or as long as it consolidates above $30, all is good?
Thank you for time.
Thanks for the great question!
A stock comes off my watchlist for one of two reasons: 1) Price movement invalidates the chart pattern (i.e. weak trading in a long setup) or 2) price breaks out (in the case of longs) or breaks down (in the case of shorts) and completes the pattern that I'm tracking.
In the case of 2), if I take a position I utilize my trade management guidelines which are mostly summarized in the "Rules of the Game". I tend to take profits along the way (esp. in a bear market), and also use a 21-day moving average as a stop. I find that allows me enough room to ride the trend while managing losses if price pulls back. Hope that helps!