Here’s Why We Look For Second Entries
It would be nice if all a trader needed
was to see a setup with edge, take the trade, and our biggest concern of the
day would be where to place "our stock", for profitable exiting. The reality of
the matter is that even with an edge, you need to be prepared to take the
second entry quite often. Many times this is a few minutes later, out of the
same formation, but other times a confirming pattern develops as the day wears
on, and this ends up being the profitable trade.
09:40:11
Intraday
Setup Alert
From the Nightly Daytraders
Report Altria (MO)
has broken thru the extended supports of an upsloping Slim
Jim. The stock is down .15 at 31.
The original pattern carried over into today’s
session, and I was there, alerting our subscribers to what looked like a Low RS
breakdown pattern. Unfortunately, this one particular trade did not produce any
greenbacks from trading "the edge." No problem, that’s why we use stops to
minimize our losses when wrong. Less than half an hour later, another set up
with edge was there to be traded. Even though this alert slipped by
"us," if you
trade MO, were you able to take the second entry without "the help of a
guardian"? With some of the products that they sell (ahemm…cough, cough), you
might need someone to watch over you, but when it comes to trading the stock,
the trades are there for everyone to enjoy, without the harsh consequences.