Wednesday, October 20, 2010

Update on two past buy suggestions...

If you had bought VPG above $16.00 as I had suggested in "another speculative long IPO trade" and CELM as it broke out its pennant as I had highlighted in "CHGS forms pennant" then you should be up big on both today.

Here is what they look like now (the white line is where I had suggested buying):

These are two examples of what my profitable trades usually look like. VPG is on the verge of hitting its target ($18.50) while CHGS is up way more than 3x risk unless you used an really wide stop. You only need two to three trades to work like this in every five trades you take. If you take your planned risk on the other two to three losing trades or even better take a mix of flat to small losses or gains then you will make alot of money. When outsized winners like CHGS come into the mix your gains can be really explosive.
Hope this helps you understand my approach better.
Good luck and good trading!

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