Here’s The Only Way To Play A Stock
Sometimes even when you’re on the right
side of a big move, it’s hard to be perfect. It’s for this very reason that
part of our game plan always includes protective stop losses. The truth of the
matter is that even with those “supposed” penny increments created by the
decimalization of equity markets, stocks were not created equal.
The bigger issue is knowing the liquidity and
volatility of an individual stock, when executing a trade in a solid setup. For
me, and those who have read this column enough, or happen to participate in TM’s
Chat room, you’re probably aware that I like to use .35 as my mercy point.
I’ll always look to reduce this initial threshold whenever possible, but unless
there is a technically significant level that can do this for me, I’m
comfortable enough with my trade style to know that it’s still only .35 pennies,
vs. the potential for receiving some “Georgies” in return.
10:08:14
Intraday
Relative Strength
From the Nightly
Daytraders Report Hutchinson Technology (HTCH)
has established an extended ‘slanted’ triple top. Triggers for resumption of
trend against this resistance line are above 31.68, with the issue up .32 at
31.60.
One particular stock that fit the bill today was
Hutchinson Technology, but if you tried to play this one for “penny increments,”
it might not have paid the bills, before bringing home your ol’ pal George.