Take It Easy

 | Jan 11, 2013 | 2:11 PM EST  | Comments
  • Comment
  • Print Print
  • Print

On a day like today, one of the easiest things to do is to overtrade. There are quite a few pullbacks and not much energy, so it is very easy to buy and sell just to keep busy. When I can't find many new things to buy or trade, I often find myself selling stocks that are still OK technically just to do something. I justify it by thinking that the action is weak and there is risk of more downside, but often I'd be better off if I had done nothing and waited for real weakness first.

One of the good things about action like this is that it helps charts to set up. We have lighter volume pullbacks to support and we are able to see what has good relative strength or underlying support.

A key element of good trading is to know when not to push it. I have a few things working today like China Lodging Group (HTHT), which I mentioned Thursday, but I feel like I'm trying too hard to make things work when they aren't cooperating. I'm going to heed that feeling and take it easy the rest of the day.

Columnist Conversations

With just less than an hour til the close of trading the S&P 500 is trading nearly 4 points off of that 2,...
This is the pullback I would be looking at for a possible entry against the setup in my article. If you want ...
Market basically flat as we approach 2pm EST. Two of my favorite large cap growth plays, Apple (AAPL) and Gile...
The big-picture chart pattern in Nat Gas shows indicates a potentially meaningful Double Bottom formation in t...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.