What Are The Rules Of The Trade?
I’m always in search of
strategies that make sense to me, so that I might add them to my
repertoire. But, I also like to ‘mix and match’ my style of money management
with the new ideas that strike a chord in me. I’ve found confidence from the
rules that I’ve tailored for myself vs. some of the rules that others are
confident using when laying off the risk. There are no wrongs when it comes to
money management, as long as you’re honest with yourself, and can live with the
results. There are only evils out there when you doubt your execution with the
‘shoulda or coulda’… the Achilles
heel of trading.
It’s been quite a while since I’ve put up a Taglia
alert. There’s actually been quite a few lately that have produced great
results, as it’s a strategy that benefits from a strong market environment. But,
I usually need some extra ‘visual’ qualification in the charts for me to feel
comfortable with this particular type of breakout trade. The initial idea makes
sense, so a seed while planted still needs some extra nourishing before it
blossoms into something that I can live with.
Besides the ‘visual qualifications’, such as a
pattern breakout on the daily or weekly, I also tend to my new seed by using
money management rules that I have the confidence to live with as well. For
those of you familiar with my style, that incorporates tighter money management
than what Taglia uses. Sometimes it means ‘being taken out’ prematurely, while
on other occasions it means ‘taking a little something off the table.’ More
importantly though, it means bottom line, being able to participate in a
confident and consistent manner, worthy of a long term edge.
09:42:54
Intraday
Setup Alert
KVH Industries (KVHI)
will trigger a Taglia
Gap above 25. The High RS stock has broken thru 52-Week Highs, trading up
1.38 at 24.88.
On days like yesterday where reversals worked
handily, and many trending stocks moved higher, the alerts I posted in both the
chat and on the wire did quite well, but ‘looser’ money management rules ‘woulda’ knocked my performance out of the ball park. But, on a day when the market
turns it back on early gains, like in today’s session, my style of trade
delivers better results than those that play the trend a little bit more
aggressively. I honestly couldn’t tell you ahead of time which would end up
working better in today’s trade, but I could tell you very confidently what I
was willing to live with, ahead of time.