by 09/04/08
However, it's no secret that stocks oftentimes pause on their way up, or even retrace their steps a bit. If you see the stock running up, up up and then it either stands still or pulls back, that's a good time to cash out of your option trade. Enjoy the profits and hold on to your original investment dollars to get back on the horse again.
More Trading Ideas
GO 'BACK' TO YOUR BEST PICKS, AGAIN AND AGAIN
Stocks don't just shoot up in a straight line -- they do what's called backing-and-filling, which basically means they build support areas from which they can take off and run to new highs. These temporary dips are great for picking up your favorite names at decent prices before the ride takes off again.
Sure, you might have missed out on some great trades if you were trying to avoid being caught in the "bear" trap that the overall market has turned into. But there are plenty of profits out there for you to capture. So, start looking at earnings reports, trading volume, money flow and performance expectations to pick out some stars of your own to add to your portfolio today!
Sam Collins
FAST is now consolidating and recently flashed a buy signal from our internal indicator.
Options Expiration Adds Volatility
The opening looks to be higher but today is options expiration day, and anything could happen.
Chances are high stocks will sell off further, but be alert for a dead-cat bounce after such a dramatic breakdown.
Traders and longer-term investors should sell any new positions at the first opportunity and short ETFs on a temporary recovery in the market.
CAT, the blue-chip of its industry, is the first to attract attention when it's time to dress up a portfolio.
