Discussion in 'Stocks' started by l2tradr, Mar 4, 2010.
Taking a short here for a swing trade. Stop at $129 or so. 1st target $115.50, 2nd target $107
Something I learned from trying to fade strong moves many times and getting burned is that even though you're afraid you'll miss the move, the price where you place your stop will very likely be reached and is usually the best place to consider entering the trade for the pullback move.
I only day trade though, but I imagine this might apply to swing trade moves too.
Good points, although not sure it was a bad entry. Well, it was of course since I was stopped out, but the reason wasn't, IMO. The stock went to 128 and change then dropped off about 3 dollars...I though it will retrace from there and naturally the stop is going to be above the old high, no? Anyways, will continue to monitor it for a swing, I usually don't have high % wins in swing trades but they pay off as my R:R is pretty good overall.
I saw your initial call here and thought it wasn't a totally bad idea because of how hard price sold off that new high.
But I also thought how many times (day trading) I was burned trying to pick a top and then see price reverse right about where I was stopped out.
DECK closed yesterday slightly above the previous day's high. Best to wait till the next day to see if price would break down the close, better yet break down the low, of the previous day.
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