tailieunhanh - techniques_of_tape_reading_9

Tham khảo tài liệu 'techniques_of_tape_reading_9', tài chính - ngân hàng, tài chính doanh nghiệp phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | PART THREE Practical Examples 203 trailing my stop I ll be frustrated for turning a 3 8- to Va-point gain into a 3 8-point loss. Traders must rid themselves of such thoughts. Instead as the stock is climbing they should be planning their exit strategy Okay the stock is positive. I m either going to keep the stop at 215 8 or trail it to breakeven. I don t want to take a 3 8 loss on a failed breakout. I d rather take the flat trade. Maybe I ll use 2115 16 so that if 22 fails I take a small loss but my break of the 22 stop is confirmed. The idea is that traders have to have the exit strategy. This lets them focus on the stock activity as the stock moves. Cluttering their minds with thoughts of profit and loss does not allow for clear thinking and the application of tape-reading principles. The less they are focused on the action itself the more their emotions control the trade. Successful traders must maintain self-control at all times. They must define their strategy and execute it when the time comes. Fortunately in this case the 22 held. At this point the former resistance of 22 now has changed to support. For me if there were any signs of selling at 22 and I would have exited the trade. With 22 as our stop we wanted a move to over 221 2 to occur. In the chart we again see a volume increase as well as the break of 221 2. At that moment holders of the stock began to consider exiting at least half their shares above the 221 2 level into strength. 223 4 is a good level to sell into strength on the price and volume increases line 2 . Holders would trail the stop to 221 2 as we broke over 23. The next few volume bars from the point at which we took half our shares began to fade. The slowing pace of buying with decreasing volume indicated that the top of this stage of movement was near. We now wanted to look for a price to exit our remaining shares. As the stock moved over the 231 2 level buying dried up considerably line 3 . We saw a drop in the bid to 231 2 and then .

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