Time to Take Profits on Another Trade...

When I first started trading, I remember how much I hated weekends… [Jeff Clark's Market Minute]( Time to Take Profits on Another Trade… By Imre Gams, analyst, Market Minute When I first started trading, I remember how much I hated weekends… Waiting for the markets to open up again on Monday was agonizing. I couldn’t wait to start trading again. Trading was fun, it was exciting, and I wanted to get as much practice as possible. Back in those days, it didn’t take much to convince me to get into the next trade. Of course, most of those trades were poorly planned. And predictably, the results weren’t all that great. A Priceless Lesson It took a couple of years for me to learn a priceless lesson… Good trading is boring trading. Your trades shouldn’t be exciting. Good trades are methodical and planned out in advance. As you mature as a trader, you’ll find yourself simply doing the same thing over and over again. And that brings us to a trade I put on your radar back on [January 24 in XHB, a homebuilders ETF](. Regular readers will know a key part of my trading plan is to look for trend continuation setups. These setups are the highest probability setups you’ll ever find. They occur after a market has made a strong directional move. After such a strong move, the market will often pullback or base in a sideways fashion. It’s these pullbacks and bases that create these continuation setups. In the case of XHB, that’s exactly what happened. XHB had a strong upwards move from October 25, 2023, to December 15, 2023 After this move completed, XHB traded sideways in a basing pattern which broke out on February 8. This base was the trend continuation setup I called out on January 24. And sure enough, following that February 8 breakout, XHB has traded higher once more. You can check out this sequence on the chart below. [(Click here to expand image)]( Now, it’s time to lock in some gains on this trade. Risk Management XHB is showing signs of being very overbought. But this doesn’t mean that XHB can’t go any higher. So what we want to do in a situation like this is use a trailing stop loss. A trailing stop loss allows us to lock in a gain while ensuring we can still stay in the trade if the market decides to keep going up. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. My suggestion would be to place a stop loss order just below the March 1 daily low of $102.56. So long as XHB keeps trading above $102.56, you’ll remain in the trade. And of course, we can trail the stop loss higher if the stock trades higher. On the other hand, if the trailing stop loss is breached, you’ll still walk away with a nice gain if you bought the breakout like I suggested on January 24. Happy trading, [Signature] Imre Gams [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](