This Is Why You Should Adjust Your Stops
A stock takes out a
resistance line, and you open a long position. Shortly after the
entry, the stock begins to move in your favor. But, this is not the end. You have
to properly manage your position.
09:24:36
(From TradersWire)
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Setup Alert
Wyeth (WYE)
is forming a flag just below 40. Long WYE above 40. Target is near 42. Risk
0.8-1.00. WYE closed yesterday at 39.85.
10:55:02
Follow up on the 9:24 story (WYE)
The issue is trading at 40.50, up 0.65. Raise your stop to breakeven, or higher.
Since our initial risk is 0.8 to 1.00, we normally take a partial profit at
40.80 or higher. But, I just don’t want 50 cents profits to go away. That’s why I
posted the alert. I’m sure some of you have adjusted the stop to 40.25 , or even
higher to protect profits.
Have a nice afternoon session.
If you have questions, feel free to mail them to me.