Money Managment Techniques You Should Follow As A Swing Trader
On Thursday, the Nasdaq lapped higher but quickly found
its high and began to sell off. It found its low by mid-day and then
generally worked its way higher throughout the rest of the day. This action has
it closing well and at new highs for the year.
The S&P put in a similar performance. This action has
it also closing at new highs for the year.
So what do we do? I like the intra-day corrections we’ve
been seeing lately. They seem be just enough shake out the nervous longs and
just enough to attract some top pickers. This action is healthy. Further, most sectors
remain at or near multi-month highs with many at 52-week highs. I do wish the media
would stop celebrating the rally, but I guess you can’t have it all (if you did,
where would you put it?). Therefore, continue to focus on the long side.
However, make sure you continue to practice proper money management–use
protective stops, take partial profits when offered, and trial a stop on the
remainder.
Looking to potential setups, Standard Pacific Corp.
(
SPF |
Quote |
Chart |
News |
PowerRating),
in the strong homebuilders, looks like it has the potential to resume its
persistent uptrend out of a pullback. Note, I’d prefer if this pullback were a
little deeper, but, as mentioned above, I guess you can’t have everything.
Stay On The Trail
Tol Brothers
(
TOL |
Quote |
Chart |
News |
PowerRating) has
moved nicely since first mentioned (a). When blessed with a nice trend
resumption like this, make sure you take partial profits and trail a stop higher
(b).
FYI
mso-fareast-font-family:”Times New Roman”;mso-ansi-language:EN-US;mso-fareast-language:
EN-US;mso-bidi-language:AR-SA”>As most of you know, I rarely take vacations. And
if I do, it’s normally around times when trading is notorious for being poor
anyway (holidays, e.g., “Times New Roman”;mso-ansi-language:EN-US;mso-fareast-language:EN-US;
mso-bidi-language:AR-SA”>Christmas). However,
a client (of the fund) has asked me to crew in
mso-bidi-language:AR-SA”>Charleston “Times New Roman”;mso-ansi-language:EN-US;mso-fareast-language:EN-US;
mso-bidi-language:AR-SA”>to “Times New Roman”;mso-ansi-language:EN-US;mso-fareast-language:EN-US;
mso-bidi-language:AR-SA”> race. Since it’s been around 10-years since I’ve
been offshore, I thought this would be a good opportunity to go sailing.
Therefore, my last column will be today, Thursday May 15th. My column will return on
Tuesday May 27*.
Once
again, don’t
do anything stupid while I’m away!
Best of luck with your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
*Bobby Boudreaux will be house-sitting for me.
Feel free to stop by to visit with his “dawgs” or for a demonstration
of his massive gun collection.
Bobby,
don’t forget to drag the bodies inside the house before you call the police.
“….. ..I have read your book over a dozen times and I am still learning new things. Thanks for making me realize that I am a “method” man and I have since changed my ways increasing my success greatly….Thank you again for writing a terrific
book…..”
Anthony P.
