A common mistake that beginning traders make is assuming a stock has moved too far, and if they don't make the additional error of betting against the trend, they at least continue to miss out by leaving too much money and opportunity on the table.
In addition to the chart I shared with you last week on American Express (AXP) which went on to even higher heights thanks to big earnings and the current prop-up in the financials, one stock my scans picked up early last week was jeans and apparel maker Phillips-Van Heusen (PVH). Usually you'd think that anything having to do with retail in a rough economy would be the LAST place you'd want to look, but the scans said here's a leading stock with more potential.
In my Options Shark service, we managed to enter the May 25 calls a week ago at 2.75 when the stock was trading around 26.50, as the indicators said all systems were GO for more upside. Per my rules on taking half at a +100% gain, we sold half of the position at 5.50 last Thursday morning, leaving us with another "Free Trade" from here.
Phillips-Van Heusen (PVH) Daily Chart with 20-day Acceleration Bands & Bollinger Bands, plus Percent R and Efficiency Ratio
It's so much easier not to second-guess yourself once you're in a free trade position. You can simply let the rules of your system or method either carry the trend further, or lock in the remainder if the trailing stop gets hit.
Tag >> AXP
We're getting into that zone on the drop this morning where the daily charts are getting a number of bull retests, which usually means you want to buy the dips.