That $5 Dec. $125 we picked up yesterday is already at $7.20!!!
Talk about calling the bottom to the penny!
Don’t be greedy, 10% trailing stop is the way to go now or take your 40% profit off the table.
I’m doing the trailing myself in uber agressive mode which means at each successive 10% gain I will accept an additional 5% pullback before I sell. Ie. my stop is currently $6.50 (30% profit) at $7.50 (50% profit) I will set my stop at $6.75 (35% profit) to allow for more pullback, at $10 (100% profit) I will be willing to accept a pullback to $8.50 (75% profit) before bailing – it’s complicated but works for a longer position.
You should really follow rule # 1 which is: Do as I say (keep a 10% stop), not as I do – you will probably outperform me because I tend to love my stocks too much.
Remember, options expire this week, lots of wierd stuff can happen…
I love it when a trade of the day works!
