The Rules Of The Game
We’re not investors, we’re
traders, and bottom line, you have to
make scaling out of trades as much an objective in your trading as the price
objective that you might have in mind for any positions you take on during the
day.
When playing the momentum or ‘mo-mo’ game, you
have to keep one step ahead by always taking something off the table, while the
ducks are still quacking and the profits are still real. Investors might take
issue with some of what we do on an intraday basis–or at least the market
makers and specialists might, as we cut in on their action–but that’s another
issue altogether.
In ValueClick
(
VCLK |
Quote |
Chart |
News |
PowerRating) early on this
morning, triggers for continuation longs were pointed out if the stock could
break above its 15-minute highs of 12.12. Several minutes later, the stock did
just that, as momentum traders piled in, probably some investors as well, and
who knows–maybe even James Cramer adding to his existing position.
Back to us though, as intraday traders our only
concern is to keep the game real, and profitable–and not worry about who sees
‘value’ and who else may or may not be ‘clicking’ while we’re in a profitable
position.