SKF - new rule

Do not buy SKF when the price is over $120.00. Wait it out.

Firm stops with IBD stocks

Stops should be set to accept a maximum of 7-8% loss when trading any of IBD's top rated stocks. Rationale: IBD is tracking "big-dog" investors. When heavy-hitter investors start trading a stock, it can follow profitable channels. But, when they move on to something else, these IBD stocks often fall fast and hard without recovery. So, if the decline goes beyond 7-8%, it is likely to just keep going. GHM may be an example of this, as well as MOS, RRC, or KWK. Not sure if this is completely accurate, but it seems plausible.

We allowed a greater loss margin for GHM and ended up losing 11.5% on the trade.

Stops

I have to set stops from now on! I'm down over 16% on MOS. I should have tapped out around a 5% loss, tops. Damn it!

Stock note

Note: If a stock goes up an unusual amount before noon, take profits (i.e.: RRC went up 8% between 10 and 11 am last week then after noon fell hard)