Stock Trading A Bullish Transition

Monday, November 9th, 2009 at 5:24 pm

Stock trading in a bullish transition phase of the market requires caution.

At this phase of the market your primary goal remains to protect your capital. However, you don’t want to miss out on a bull market if it comes so take a few selective positions. Possibly small postions that you can add to later when the direction of the market becomes even clearer.

Identify the strongest stocks in the strongest sectors and then watch for trading range breakouts. Keep stops tight and stick to them rigidly.

If you can’t find an individual stock that catches your eye, consider an Exchange Traded Fund.

Todd B

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