Can you pass this test?
Dave Landry is principal of Sentive Trading, a money management firm, and a
principal of Harvest Capital Management. Mr. Landry is the author of two top
selling books,
>Dave Landry’s 10 Best Swing Trader Patterns And Strategies and
>Dave Landry On Swing Trading.
If you would like a free trial to Dave’s Nightly Swing Trading Alerts Report
The Worst Teacher?
Let’s take a look at TXU Corp.
(
TXU |
Quote |
Chart |
News |
PowerRating), a stock mentioned recently
in my trading service. Notice the stock sold off hard after hitting a new high and
then sets up as a pullback. The sector itself was in a downtrend and the market
itself was questionable. It had all the makings of a great setup.
Notice over the next few days the stock triggers an entry, initially moves in
the intended direction, but then reverses to hit the protective stop. Â
Now, look what the stock does on the following day. It drops over 10 points.
What lesson can be learned from this? Stick with positions no matter what?
NO! Nothing is to be learned. Yes this one came back but it could have just as
easily been up 10 points. Always honor your stops.Â
I covered the above in more detail along with current market conditions
earlier today in my weekly interactive audio/visual presentation. Email me if
you need a free link (or
click here) to this recording and/or the archives to the prior year or so
(covering a plethora of trading topics).
Best of luck with your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. If you would like a free
trial to my trading service, click
here.