Tuesday, October 24, 2006

A setup for a strong move

OMC reported earnings today and had a gap up. When I saw this stock, I knew it had the characteristics of a strong mover. It gapped up and broke out of resistance at 96.64 in the daily chart set in June. I got a hunch that the stock would make a big move but I got tempted by my profits and got out early. It was hard getting back in because a part of me is afraid of a quick reversal. I have been caught in many quick sudden reversals in earnings stocks. I went back in quite a few times but I just did not have the conviction. I find it hard to hold a stock if I do not have a good entry price.
  • Stay with a good position

1 comment:

Alex said...

: )

About Me

I have been trading for 5 years. It took close to a year before I became profitable. I find that I am improving gradually each year. My method of choice is scalping. My edge lies in tape reading NYSE stocks and staying on the side of the specialist. That is the method I learned when I started. As I build up my capital I will try new styles and trade new markets. In late 2006 my trading hit a rough patch after the introduction of the NYSE Hybrid system. For most of 2007, I have been on a search for new strategies that would help me adapt to the market.