It’s no secret that the fastest way to compound your money is to keep it working for you. For that reason, when I’m in the market, I do my best to keep my trading capital at work in stocks that are on the move. I lose patience quickly in trades that stall out, because I know there’s opportunity elsewhere I ought to be capturing. So when a stock begins to lose steam, I raise my stops aggressively so that if the trade begins to flutter, I am checked out of the stock and am free to put my money to work elsewhere.
Today I was stopped out of KEA (Keane Inc.), but with a gain. I highlighted this stock as a swing trading  candidate in my stock newsletter  2 weeks ago with a buy point of $14.50. KEA quickly began to work, showing me a gain of 9.5% in just 8 days. I raised my stop on Sunday night, and on Monday this stock began to fizzle out. With the market on the verge of a breakout, I was in no mood to stick with this trade, knowing that there would be a number of other opportunities I could catch if KEA was going to stall out. Today, I was stopped out at the close.
Getting stopped out doesn’t bother me, for a few reasons:
1) I booked a winning trade of 4.5% in 2 weeks. Not stellar, but not bad either.
2) I like to keep my money rotating into new stocks with potential, rather than sticking with a stock that is no longer on the move in my direction.
3) I now have more cash on hand to put into new setups which I highlighted tonight in the Member Area.
Force your trades to continue showing you why you should keep them on your screen. When your trading capital is at work, expect a lot from it. Whenever your positions stop producing profits for you, it’s time to move on to something else that will.
By keeping your money rolling from one good trade to the next, you’ll be able to rack up returns that would make the buy-and-hold crowd blush.
President, The Stock Bandit, Inc.