Borg Stocks and Trailing Stops
Last year it was PWR, MET, and AAI
This Year it's LMG, MAKE and APM!
Don't you just love BORG stocks?
For those of you who don't know about the Borg from the Star Trek Series,
Well.. Borgs are the merciless living nightmares of the vast galaxy that either assimilates
or destroys any sentient race in its path.
And the Borg's favorite pickup line?
Yes. Once the Borg Collective makes a move, resistance will be like a hot knife through butter.
Borg Stocks are just like that.
They usually manifest themselves after a breakout from an ATH (All Time High) Resistance or a Multi Year Resistance. They make gaps as they go through the days, and even defy the natural laws of the RSI Gravity.
The catalyst for this phenomenon is usually unknown especially during the rise.
So how do we play with these bad ass stocks?
Buy on Breakout and Set Trailing Stops.
I don't know about you but this works for me.
There are many ways to set trailing stops.
Find that which suits your trading style best.
APM Chart
APM Chart 10.8.2012
APM Chart 10.9.2012
Be sure to SELL when your stop is hit.
Trust me... You don't want to be holding a dead Borg.
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