Management 101
The setup and entry into a trade are the easy parts. What is ultimately going
to determine how profitable you are as a trader is your money management.
14:31:05
Toll Brothers (TOL)
is forming a pennant on the daily chart. TOL is down 0.42 at 28.93 and is
holding a
3-month relative strength rank of 93 from TradingMarkets.com.
The stock is breaking out of the setup alerted on Friday, April
26. But now the real discipline comes in to play.
The stock has broken out and is up over 1 point. Managing this
trade so that if it does not work out, you don’t come out with a loss is
paramount. Trailing stops should be moved to break even to insure against this.
Get in the habit of doing this and your results will improve greatly. Don’t let
profits become losses, and you will be on your way.
Until tomorrow,
Duke