Here is something I learned in 2016 and a new rule I added to my system

“You can NOT re-enter a trade you’ve exited unless the price closes for another 52wk high.”

Here are 3 examples of this rule being helpful for trades I made in 2016

$PLNT – Should have reentered

The first position was taken shortly after the election. The stock had run up and I eventually got out around March as the stock closed below its 50wk (200day) moving average. But it rebounded between March and June and in June made a 52wk closing high. (Signal, I ignored)

Instead of make money, I forgot about this stock. Because I’d been shell-shocked buy one of my bad trades earlier in the year.

This trade scared me away from trading anything which hits my stop. So I thought all trades which hit their stop are wasted and done. Time to find a new one.

The place where it’s saved me and I listened was $ENZ

The box shows where my stops were hit and I fully exited this trade. If it breaks out to another 52wk high, I’d buy it because I know from $PLNT it’s a good signal but I know from $SDRL to be patient and not try to over think the market.

My system is 100% focused on trend following so I know it’s not something everyone could do. Other people probably think this is crazy but it works for me and thought I’d share something I learned in 2016 from my trading experience.

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