Importance of an Exit (and re-entry) Price
$SARK
Apologies for the lack of charts, as I’ve been enjoying the summer holiday with the family.
I’ll often mention downside or stop out price levels when engaging in a trade. Risk management on the downside is much more important than choosing how to manage gains on the winners. If you can’t preserve your capital, you can’t trade.
I wanted to repost this one from 6/20. The markets continued to grind higher since this post, but SARK 0.00%↑ has held near the mentioned stop out levels.
The arrow in the chart below is pointing to the date of the original post. We got a pop, but it quickly came back down as the market continued its ascent. However, it never broke that $35 level mentioned in the original post.
We’re seeing some softness today, and SARK 0.00%↑ is up 2.5% early. Could this be the start of some consolidation, which in my view, would lead to SARK 0.00%↑ outperformance. Possibly. But as long as it’s above $35, I’m going to be waiting to find out. This is why the exit point is important.
