The keys to trading success
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
Keys to trading success: Money Management,
Risk Control, Letting Positions Work, Being Flexible
Pan American Silver
(
PAAS |
Quote |
Chart |
News |
PowerRating) was recently mentioned as a long candidate in
my trading service. It provides an abundance of learning examples (I bet you
thought I was going to say plethora). Notice that the stock triggers a buy for a
pullback setup (1). Although the initial performance was lackluster (2), as a
preach, you have to give positions time to work–don’t micromanage and exit
early. (3) The stock then rallies to hit the initial profit target (email me for
rules). The stop gaps through the stop for a small loss (4) on the remainder of
the position. As you can see, without money management, this overall profitable
trade would have resulted in a loss. Then, in last week’s webcasts, I mentioned
the stock as a potential SHORT (5) because it had set up as a
First Thrust sell signal. It triggered the following day and has since sold off
nicely, approaching the profit target on Tuesday (6)–close enough (don’t split
hairs!).
I’ll walk you though this one day-by-day in Wednesday’s webcast.
On Tuesday the Nasdaq sold off in the morning, it found its low around
mid-day, and then it rallied for the rest of the day.
Ditto for the Ps.
So what do we do? Things
are still looking up. The fact that buyers came in late in the day suggests that
this bull remains alive and well. Overall, Tuesday’s action only appears to be
“Knockout” in nature (e.g. like the Trend Knockout pattern). The
sector action looks pretty good too. Most of tech looks poised to continue
higher out of pullback. Retail has been melting up lately. And, most commodities
remain set up as shorts. Considering the above, look to get long tech and
retail. On the short side, look for opportunities in the gold, silver, metals
& mining, and the energies.
As far as setups, recently mentioned (in webcasts
and service) Cabot Oil & Gas
(
COG |
Quote |
Chart |
News |
PowerRating) is once again set up.
Wednesday’s With Dave
It’s that time again. On Wednesday September 20th
at 11:00 AM EST, I’ll be hosting my weekly interactive webcast. In addition to
market and sector conditions, I plan on covering a plethora (you knew I would
say it) of topics including
scanning, money management, being flexible, and sticking with winners. I also
will rehash old lessons such as NOT micromanaging. As usual, admission is free
but limited by the software. Email me if you need instructions on how to join
(the same each week). Hope to see you there!
Best of luck with your trading on Wednesday!
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.