Trends change after a certain percentage pullback. Good trading stocks hold a momentum rally that does not breach a 10% pull back, hence they step well.
A good swing trade is best when the pullback does not breach the 10% (ie 8% to 12% give or take), hence every pullback on Apple Inc (AAPL) during 2014 allowed a swing trade winner! Know where the 10% stop loss is, why! The massive population of money managers know where it is!
Investing Quote…
..”Anyone who buys or sells a stock, a bond or a commodity for profit is speculating if he employs intelligent foresight. If he does not, he is gambling.”..
Richard D Wyckoff
..”Money can’t buy you happiness but it does bring you a more pleasant form of misery”..
Spike Milligan
..”Until an hour before the Devil fell, God thought him beautiful in Heaven”..
Arthur Miller, “The Crucible” [Contrarian Investing]
Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.
Nobel Laureate for Economics Paul Samuelson
..“If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he is wrong.”..
Bernard Baruch
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