Well for a little while anyway. I am glad I finally recovered from my own personal ‘October scare’ watching the market last week and feel that I have at least half my sanity back now. So I am gonna run with a bulls a bit more and see what I can find.
The bottom line is, if you show me a good chart whether it be a stock or an ETF, then it is worthwhile exploring if there is some potential regardless of what the rest of the market is doing. It may mean that you have to use tighter stops to control risk, but might as well go with the predominant trend force.
A Stock is Never too High to Buy and Never Too Low to Sell
That is the quote from Jesse Livermore that I paraphrased a bit. I don’t know the exact quote, but I am writing it again because I think it is a very important point. But again, manage risk prudently and use tighter stops and closely defined entries.
Buying stocks ‘high’ is also referred to as ‘momentum trading’. I believe statistically it may produce more winning trades than any other method for the simple reason that you are making trades along side the predominant force in the market and in many cases that force is likely to continue.
In the past I used to be afraid to trade momentum because I could not remove the blockage in my mind how scary it is to ‘buy high’. Not anymore.
So that brings me to TA Travel Centers of America.