Trading Strategies for Stocks at All-Time Highs: Essential Risk Management Rules
Each phase of an uptrend has unique factors that need strategic shifts in risk management and profit objectives. This is especially true when a security rallies to a new high that hasn’t been traded in its long-term history.
This scenario can build wealth quickly for day traders or investors, but it requires special technical rules to capitalize on the mechanics in play. Reaching an uncharted territory in stocks can quickly build wealth, but it requires a thoughtful strategy. Investors should manage their emotions and expectations.
Key Takeaways
- Use special technical rules for effective risk management and profit-taking when stocks hit all-time highs.
- Breakouts often proceed in three phases: action, reaction, and resolution, each…
