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Trading Worst Patterns »

[2 Nov 2010 | No Comment | 208 views]
Avoid the 2nd 5min bar after breakout (if stock moves too high/low)

Why I say this? Take a look at DIN I traded today:

DIN showed strong upside movement this morning. I missed the first breakout point @47.81. As I was still regretful that I should have came out early on MHS, I spotted DIN when it was shooting up high on its second bar after breakout. I entered at 48.36. BIG MISTAKE!! I should remember this BIG TIME–Never enter a stock at its second breakout bar, you will expose yourself to huge risk! As I did in DIN. I entered on the second bar after …