I bought BEAV on it’s decent breakout of it’s flag pattern last week.
I generally use options, sometimes deep in the money, sometimes closer to the money and sometimes a tad out of the money. It all depends on what I’m seeing in the stock.
If it’s a leader and very fast moving and has a great setup I may take more risk, and vice versa.
In this case I bought stock and used no options.
The stock was holding above my buy point but I had a stop in just below it at the $47.60 area.
If a breakout is to work, it generally does right away and then it will give you further buy areas as price increases.
That was not the case here in BEAV and I ended up losing only about $130 since I play it conservative and kept stops tight.
If a pattern fails to work, cutting losses quickly is imperative.
I almost enjoy small losses such as these since they allow me to catch big winner such as CRM and others.
I have some losses but the winners outweigh them!