Hold onto an uptrend stock = you make profits
Hold onto an downtrend stock = you make losses
Sometimes we hold onto an uptrend stock and we make losses.
As prices does not move on a straight line as illustrated on the diagram above, it actually consist of multiple rallies and price retracement DAILY. On a price rally we see prices moves up gradually daily looking handsome. On a price retracement we see prices moves down gradually daily looking ugly. BUT make no mistakes that during a period of price retracement on a stock’s price, it can retrace and consolidate for a period of 2 weeks or even 1 month! (This is where investor/trader gets shakes out!) As we live in the micro days through looking at the charts, it pays to adapt a bigger picture view on your technical analysis charts. When the price retracement is done at a certain brewing support, prices will starts to create rallies ahead. This is the point you start to make your position into that stock by drawing out not just your entry but your exit plans as well.
Below are a set of stocks that shows brewing support as a guidance. Be aware that a trading plan is still needed to be drawn out before you make your decision
William Au
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THE THREE /// LINES TRADER (TFM) 