Knowing Your Contingency Plan Ahead Of Time
I guess that it could have
been called a Taglia gap candidate too. No
matter what you call it though, it’s ultimately in your hands to
manage the risk/reward profile if the trade is taken.
09:45:02
Early
Relative Strength
From the Nightly
Daytraders Report, Stratasys (SSYS)
has gapped higher in early trade. The stock has managed to hold onto early
gains in the form of a pullback to prior intraday Slim
Jim resistance after establishing fresh 52-week highs. Triggers for
resumption of trend might be considered thru the 15 minute highs of 51.75. SSYS
is up 1.86 at 51.69.
Trading the edge doesn’t always
mean printing money. Sometimes it’s more about quick profits, or being able to
cut the losses quickly enough, in order to maintain the long-term edge. It’s
also about knowing what you are going to do ahead of time when the stock starts
to move, one way or the other. I know what the Taglia strategy would have done
with Stratasys ahead of the stock actually ‘printing.’ The question to you is,
would you have done the same? Ultimately, the right answer is knowing how you as
an individual will best trade the stock according to your own tolerance level of
risk within a well-defined trading plan.
Chris Tyler