Risk management is very important also for best stock picks
Stock charts technical analysis can explain why is important to never chase trades. It is really not necessary to chase entry in any stock trade. It is much better to wait for another stock pick or new trade setup in your best stock pick.
If you think about cheap stock trades then you have to think more about risk than about stock broker commissions. I had this page describing that management of risk is much more important.
I have noticed bearish stock chart pattern known as Island reversal on NFLX chart. This bearish stock chart pattern produce two gaps which act as strong resistance . NFLX was leader of last market advance. Now sits right on trendline. It is important to watch how it will act
It is too early to call a top in this NFLX trend, but situation starts to look less bullish. If you hold some NFLX, use trailing stop to lock you gains. It is important to manage your open trades.
I bought CPN based on setup in my trading newsletter during fear and panic last week. And CPN is really strong. It moved up. I think that CPN has more upside potential.
AAPL stock has broken support levels and is poised for more declines. Uptrend finished.
I have received questions why I do not enter my orders before market open.
I think it is not good idea to enter orders premarket. I try to explain why.
What is your experience and your stock trading strategy for stock orders? Let me know….
Time during next week till the end of year will be quiet on stock markets. And it is good time to look to own trading statistics in stock trading journal.
It is good to check what was your trading this year. What did you do well as a trader ? And what did you bad ? What do you need to improve ?
I have one tip what to do during this free time. I plan to check my stop loss placement and trailing stop strategy.
Have you ever tested if your stop loss placement is done correctly ? What method of trailing stop do you use ? There is good tool which can help you test several different approaches to using stop losses in your trading.
This tool is Stop Analysis Center.
This tool is incorporated on Stocktickr web page (it is great online stock trading journal). I use this journal for my trading. I am going to use this stop analysis center to see how to improve my stop loss usage in my trading.
Have a nice Christmas time
OSIP did nice move yesterday. And formed bullish pennant chart pattern on hourly chart and so possible continuation move up can happen today.
I entered OSIP swing long trade yesterday, but in case of breakout of mentioned bullish pattern I plan to add to trade. I also want to enter stock position trade in OSIP with targets around 50.
Todd asked me about bearish chart pattern on LOW. Stock is in downtrend. Now it is in major support area between 24 and 26 USD (see monthly chart) . Downtrendline and declining 20 and 50EMAs are pushing price down. There is really good possibility for breakdown.
So aggressive traders could enter short immediately under 24.68 with stop above 25.48 with expectations of further decline, breakdown and then strong move to 20USD area.
Or it can be shorted after breakdown 23.825.
I added YHOO into my watch list as it is again above 200MA.
It approached resistance zone in 32 – 34 USD area. If it will be able to breakout it , then target between 40 – 44 USD could be reached very quickly.
P.S. STX broke resistance on Friday with above average volume. I entered long trade.
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