How To Book Profits Using Slim Jims
The Slim Jim pattern
is one of the most powerful
out there when used in conjunction with stocks that have been exhibiting
strength vs. the market.
12:56:57
Intraday
Setup Alert
Garmin Ltd. (GRMN)
is forming a Slim
Jim at its intraday highs. GRMN is up 0.08 at 29.38.
Even with strongly trending stocks that make
moves out of high-probability setups, the need for position management is still
the most important part of our trade decisions. In this case, scaling out of
your position in 1/2 increments, starting at double your initial risk kept a
strong setup profitable. The Slim Jim entry at 29.39 gave you an initial risk of
approximately .10. With this in mind, a Kevin Haggerty style exit strategy would
then be selling at 29.59 and 29.79. The last portion would then be a
discretionary exit as profits on 2/3 of the position had been booked. You might
not sell “the top,” but in the long haul you’ll be there to
participate in many more Slim Jims than the person who doesn’t respect the need
for proper money management.