DTT Buzz

Most day traders are familiar with the old day trading rule that tells you to "let your winners ride and cut your losers short". Well at DaytradeTeam, we've modified that just a little bit. It goes something like this:

"Let your SLOW MOVING winners ride, and cut your "TOO FAST" winners and all of your losers short"

For an example, let's take a look at a profitable trade we had on YHOO today in our Live Day Trading Room:

Notice how within a few minutes of short selling YHOO, the stock started to move lower very quickly. As you can see from the one day chart, the down move was very "steep", with the stock falling quite a bit in a short amount of time. We refer to this type of movement as an "unsustainable trend", and the type of quick move in our favor that we like to take profits into. Instead of "letting our winner ride", we gladly cashed out of YHOO for a 0.5% profit in just a few minutes and moved on to the next trade.

When a stock is moving in your direction, "let it ride" if the angle of the trend is a 60 degree slope or lower, and exit into the sharp wave on big, sharp movements in your direction that look closer to 90 degree angles (almost straight up or straight down). This will allow you to expand your profits on trades with well-controlled, sustainable trendlines and cash out for quick profits on stocks with unsustainable rushes in your direction.

Note that these same principles can be applied to all forms of stock trading and options trading.

I want you to watch me trade live every day---get my alerts and learn the methods of success in real time. CLICK HERE NOW to start a trial membership to DaytradeTeam and get started on the road to trading success right now.

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