Trade Lesson: Never Fall In Love With A Stock
Many times traders fall in love with stocks. They feel as if they actually are a part of a club or organization. This is very far from the truth. The traders motto is 'stocks are for trading not loving'. Do any of the CEO's now the small share holder? The answer is simply no. Instead traders want to take an advantage of the price action of a stock by using the chart.
For example, look how
INTC traded higher on earnings and faded right from the gap higher. This is telling you that traders do not believe INTC should be at that price are are taking profits or selling short. This is a way the market talks to us. Then on 10.22.09 INTC hits the 60 minute 200 moving average and gets a sharp 1 point bounce. Then on 10.30.09 INTC makes a double bottom pattern and has a nice quick bounce. There are endless opportunities when you understand to read the charts. Remember stocks are not for loving just trading. It is critical to always use stops and to move your stop in the money to secure profits.
The above story is the opinion of the author only and it does not reflect
iStockAnalyst opinion. Further, the author is not personally advising you
regarding the suitability of the story for your investment needs. In no event
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