The Trend is Your Friend…Until the End.

chicagosean

What a wild week. Traders have earned this coming weekend – at least those who weren’t already on vacation.

As if to put an exclamation point near the end of this wild week, trendfollowers took it on the chin in an epic way in $SODA Thursday. Just check out this daily chart posted up on Chart.ly by @1nvestor.

As you can see, Soda Stream was down over 40% intraday from the previous days’ close. What????

In situations like this, even stop orders are unlikely to help much. Michael Bigger (@biggercapital) had a short but very important post up about alternative ways to manage risk instead of using stops – particularly in turbulent times as we’ve experienced this week.

Stay nimble everyone. And enjoy this weekend. You’ve earned it.

- Sean McLaughlin: Editor & Curator, StockTwits (@chicagosean)

chicagosean

My name is Sean McLaughlin and I trade my own account from my home office on the Northside of Chicago, IL. I’ve worked at prop firms, started and ran a small hedge fund, was a member of the Chicago Board of Trade, and have learned – the hard way – to seek simpler ways of trading, investing, and living.


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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