Switcheroo
What does being a successful trader entail? First, it means having the
discipline to wait for follow through before putting on position, and
putting your ego aside and being flexible when you are wrong.
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A couple of nights ago I put up Silicon Labs
(
SLAB |
Quote |
Chart |
News |
PowerRating)
in the Nightly Daytraders Report as a possible short candidate since it
had traded slightly below the previous low and appeared to be a good bet to
continue in the direction of its downtrend. However, the stock would only be
valid if it could take out the low of the last bar on the chart the next day,
which it did not.
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Waiting for follow through here would have saved you from a
loss, as the stock has stayed strong for three days since. When the tape is
telling you what is up, you go with it.
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12:33:06
Intraday Setup Alert
Silicon Laboratories (SLAB)
is beginning to pull back from the intraday high. SLAB is now up 1.83 to
35.91.
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The stock formed a Slim Jim soon after this post and broke out
for more than 1 point out of the pattern.
Stay flexible and don’t get locked in to your opinion on the
market. It is OK to have one, just remember that Mr. Market does not care what you, myself or anyone else thinks. There is no crime in this game being wrong,
just in staying wrong.
Until tomorrow,
Duke