Here’s A Good Lesson In Keeping Paper Profits Real
Money management works both
ways
when striving to maintain one’s edge. All too often, a stock will
make the desired directional move, but won’t allow the trader time to think
about whether or not the quick thrust is a good spot to take some off the
proverbial table. My general rule is to always have at least one-third ‘out
there’ at a level commensurate with the initial position risk, as a profitable
trade on paper should never hurt when taking it off.
There will be times of course, when it’s just
physically impossible to peel some off, but if you make the commitment to
disciplined trade management as you put on the trade–you’ll ultimately be in a
much stronger position to capitalize on those that continue to run, as well as
those that don’t.
11:24:51
Intraday Setup Alert
NVE Corp (NVEC),
from the Nightly Daytraders Report has formed an intraday cup and handle–up
1.15 at 28.75. Continuation long triggers above handle pivots are set at
28.83.
It wasn’t my best, but it was a solid,
well-defined setup, with something there for those who decided to scale out
ahead of time. If NVEC had kept going, you still had somewhere between one-half
to two-thirds of a position to appreciate, but in the land of reality–I think
you can appreciate the merit of making at least a small portion of it very real,
while the getting was still good.