I might pick a direction on a stock like ILMN or oil, gold etc. Well what if I am wrong.. Happens! My entries are based on 'x' and 'y'. If these start to fail then I am out and then wait for another setup. I have taken a loss larger than I care to have again. On the flips side I have taken a gain as well,, so if the reasons I took a trade are no longer there, then I exit, loss or profit I am out.
My entry on ILMN is based on the channel and price support and over sold MACD. If we see a breakdown of Fridays price action then I will exit. NOW,, I might still hold if the overall market pulls back hard with a jump of the price of oil. To a point.. A very short point.. I also have a bullish spread on oil and bearish on an index so a pullback with an increase of oil would be just fine with me.
Chart attached.
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