Trade of the Day- RIMM

RIMM is a stock that Steve has been chirping for weeks. “If RIMM gets above 71.80 and then 72 I am going to get aggressively long,” chirped Steve. These were important technical resistance levels for RIMM to clear. Finally there was today. RIMM got above these levels and we got aggressively long. This was another Trade2Hold for SMB.

For those who did not get into this trade, I suggest you reevaluate your stock screening process. For those in this trade, now the work begins. Were you in at good prices? Did you put on enough risk for this opportunity? Were there prices to add more size?

For example 72.35 never dropped the bid after RIMM cleared these important technical levels. Did you add appropriate size here? As RIMM traded higher did you take off too much size, though the uptrend was still intact? Often developing traders tend to take off too much risk near big offers and whole numbers. Be careful to keep your risk on for such a set up and not convince yourself that you ought to lighten up without a very good reason.

As I taught last night on my StockTwits TV show, SMB University, trading is about finding the patterns that make sense to you. This is a pattern that should make sense to most traders. Now we have to find more patterns like this, and trade them with more size.

For those who crushed this trade, very well done! On our desk nice job Z$, Rosie, Danny, and Scuba.

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