Look for Thin Zones

One setup that has worked for me the best is thin zone on the long side.  I’m a perma bear and I have a fear of “height” — I would not chase a frothy stock and if I don’t constraint myself my natural tendency is to short the froth.   But one exception is when I spot a thin zone.  I have seen many times over that thin zone gets filled in a hurry.  There is good probability of success and when it’s set in motion, one gets a nice size profit in a relative short period of time.   Here’s one nice example:

This entry was posted in Tips and tagged , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s