Trend Trading Plus Risk Management Equals Profit

Here is another example of a stock that is in a powerful uptrend. Trying to pick a top in this stock would be like getting in the way of a speeding freight train. Like all my mega-trending stocks, I would recommend placing a stop just below the 50 day moving average. If the stock breaks this level of support, I would just sell it, and forget about it. A certain percentage of these picks will not work out, and the key is to just take your small loss, and pick another trending stock. In other words, we cut our losses short, and let our winners run.




Update - July 18:


I was looking at this stock more carefully, and when I did, I noticed some more bullish evidence for it. I examined it from a point and figure perspective, and noticed that it had just gone through a very bullish quintuple top formation. The image below show what I mean.


I realize that most people don't understand P&F charts, and I didn't myself for the longest time. If you are interested in learning more about this form of charting, please have a look at the book review I just wrote which can be found from a link which is on my home page.

In full disclosure, I bought shares of this stock yesterday.