We Preach This For A Reason
Every now and then, I like to put out a reminder of why it is important to
wait for entry points before jumping into a stock with a good setup, and why
it is important to honor protective stops.
11-14-2001
10:33:52
Blockbuster Entertainment (BBI)
is trading in a pullback. BBI is now up 0.12 to 26.76 and is holding a
3-month relative strength ranking of 96 along with an uptrending ADX of 39
from TradingMarkets.com.
We never get a new high, and the stock has sold off.
Waiting for an entry would have kept you out of a losing trade.
We uncovered it after Nov. 12, in which it did open above the previous day’s
high. Honoring a stop .05 beneath the low of Nov. 11 would have stopped you
out nearly 3 points before the continuation of the slide. Print these charts out
and commit them to memory, to remember why we wait for entry and honor stops when
we trade.
Have a great weekend,