MTOX
One of the readers has asked me about MTOX and whether it is a buy here. I have a position in it from many weeks ago when it came in 100% plus (Double Trouble) scan, subsequently it was also part of the IBD 200 breakout list. Now this stock has good earnings and was one of the candidate in the scan the reader ran.
The question is whether MTOX is good company to buy for long term. As far as I am concerned a company is good as long as it fits in to any of my methods. But you not only have to find right stock but you should buy at right time. As you can see , there were several better buy opportunities on this stock earlier. Now stock is up 36 % in a month and up 130% in last 65 days. Unless it sets itself up again with at least 20 to 65 days of weakness and breaks out on 4% plus, I would not buy at this level. And if you have position in it , moving the stop up to protect as much of the profit as possible is the key at this stage.
Doing your analysis as quickly as possible and entering a stock when it appears on 4% scan is the key to getting in to good stocks at beginning of the move. If you delay or shop around for second opinion the opportunity is gone or the entry becomes more risky.
That is one of the reason to do all your thinking before starting to trade a method.
The question is whether MTOX is good company to buy for long term. As far as I am concerned a company is good as long as it fits in to any of my methods. But you not only have to find right stock but you should buy at right time. As you can see , there were several better buy opportunities on this stock earlier. Now stock is up 36 % in a month and up 130% in last 65 days. Unless it sets itself up again with at least 20 to 65 days of weakness and breaks out on 4% plus, I would not buy at this level. And if you have position in it , moving the stop up to protect as much of the profit as possible is the key at this stage.
Doing your analysis as quickly as possible and entering a stock when it appears on 4% scan is the key to getting in to good stocks at beginning of the move. If you delay or shop around for second opinion the opportunity is gone or the entry becomes more risky.
That is one of the reason to do all your thinking before starting to trade a method.
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6 comments:
What would be your take on VPHM ? It figured as a earnings buy candidate a cpl of weeks ago. Hold/Sell/Buy/Should have already been sold had one entered ?
Already sold, never went beyond high in five days.
pradeep, I would greatly appreciate it if you would comment on when to take a profit using the IBD200 strategy. you strategy descriptions end with..enjoy your profits..my trouble with trading has always been profiting too soon or letting a huge profit turn on me. Using a stop-loss would prevent the latter, but do you always wait and let a stop-loss determine your profits?
Yes. A stop takes me out. You can try a fixed holding period as alternative.
There is lot of testing I am doing along with some other traders who are trading the same and we have found holding period of 24 days is ideal both on IBD 200 and 100% plus. I was planning to post on it next week.
Alternatively you can take partial profits.
For MTOX, Tuesday's action was 4%+ in heavy volume. Does this meet the criteria for a follow-on buy? It is still essentially at that level.
Thanks.
Yes. But I don't pyramid too late in the move. The stock is way up from intial buy point.
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