Years of trading have taught me not to chase stock which is heavily transacted with or without wide
price range. If the volume is extremely high says 2 - 5 times above the average volume. I would not
trade on that day, but I would choose to stay aside and watch the stock unfolds in the next few sessions.
If the stock continues to be bullish, i would expect price continues to go higher with substantial
volume but if price starts to fall below the pivot level, I would walk away and wait for the Blue
Diamond to trigger long trade.
Even though, we cannot forsee the possible run-up in the stock price in the near term.
A way to take advantage is to trade along with my propietarty indicator, "Go Long1" is able to
trigger long trade near the baseline where the price starts to move higher
from there. Usually the previous price bar is used as cutloss reference, and most of the time,
cutloss is seldom triggered even it could be just 2-5 cents away from the buy price.
The reason is simple, most of the indicators are coded taking future price into consideration
which means tomorrow conditions must be met so that the indicator will trigger today.
Most of the time when I trade, I never scan for home-run stock as we are not GOD to know.
Faithfully follow my Personal Diamond Trading System, I encounter many non eye-catching
stocks later turn into monster trades...So just work hard to make a good trade each time and
let the market decide where the stock price will be later and care less. The most important
thing I do after enter a trade is to watch the cutloss level like a hawk each day.
As long as the cutloss is not triggered, I am a winner to survive another day.
Cheers!
