L Brands (LB) — still going…for now. (June 01, 2016)
Lets look at L Brands ( NYSE:LB ) one more time. This is why I’m saying this: I’ve been covering this in this venue, in this Free Chart of the Day for a while now, showing you how to hang on to a stock that is working. The reversal was here. The confirmation or the buy signal was here. The stock has continued to move higher. Now we’re up. Yesterday I had noted that the stock could go really in to the 70s before turning around, or at least kind of pausing maybe even right up here to the top of the gap. Now today, earlier in the day, I was thinking, “Huh, maybe that’s all she wrote,” because the stock was red, it was down. But we got a nice close. So the stock is higher into the close relative to the open. A dime less than it was yesterday.
So here’s my suggestion on this: You’ve got a pretty good level for your stop right now. And that would be basically just below these prices, if this is a trade. If it’s a longer-term hold, you know, L Brands ( NYSE:LB ) isn’t going out of business. They got cut big time, now they’re coming back, so you just hang on to the stock. But if this is a trade for you, you keep a stop just slightly under 67.00. You can even go just a little bit below today’s intraday low of 67.26, that’s fine, whatever works for you. But I’m just saying this, you want to put yourself in a position to WIN. And that means you need to be involved. You need to have a position. You need to have an investment in this stock, if you are going to WIN.
Now, compare that to putting yourself in a position to not lose. That’s different. In that case you’re either in basically a surefire trade or a trade that you’re profitable on. And you’re using trailing stops or other methods of risk management, but you’re focusing on not losing. You can also, of course, be in cash. But you’ve got to understand the difference between putting yourself in a position to win, and putting yourself in a position to not lose. They are totally different and I want you to start thinking about that as you continue to check out these Free Chart videos.
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