BEAV Losing Trade

BEAVOf course I’m not always right and in this example I’ll show you how I lost and minimized losses.

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!