Taking A Protective Role
Why do we often preach about using stops on this site? Because they can keep
you out of trouble, for one, keeping a small loss from turning into a big loss.
Another reason is that they will protect you when a position has moved in your
favor.
12-21-2001
14:18:25
Nvidia
(NVDA)
is pulling back from its recent high and appears ready to resume it uptrend.
NVDA is currently up 2.07 to 63.97 and has a
3-month relative strength ranking of 97 from TradingMarkets.com.
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When the stock rallies for the next three days, all is looking
good.
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That is, until today. NVDA rolls over and gives 3 points of the
5 point gain.
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While we can’t catch the top and bottom of every move, we can
protect profits once the position moves in our favor. Learn to do this, and you
are on your way to becoming successful at this game.
Have a great weekend,
Duke