earlier this year, i wrote about what i refer to as “velocity” when trading, which basically talks about the virtues of booking quick profits when trading. you can click on that link above to read that post but FSLR is also a good example of velocity in trading:
FSLR is up about 6% on the day and trading right around the resistance level pointed out on the 4 hour chart, where the odds of a pause or a pullback are likely. now for a swing trader who is targeting one (or both) of the primary targets, T1 & T2, this resistance level will most likely only prove to be a minor speed bump en route to those targets, assuming they are hit. therefore, a swing trader or longer-term investor shouldn’t be overly concerned with such a level. however, considering this trade is already up about 9% from the breakout level within 24 hours, a more active trader might consider booking partial or full-profits here in order to capture those quick profits and redeploy those funds elsewhere, maybe even back into FSLR once the stock has either pulled back to an objective re-entry level or maybe once the stock has clearly put that resistance level in the rear-view mirror.
every trader has their own trading style. some traders prefer day-trading (in & out of a position in the same day), some prefer short-term swing trades lasting just a few days, while others might prefer holding periods lasting several weeks or months. personally, my own style is very adaptive depending on several factors such as market conditions (are they more conducive to hit-n-run or swing trading?) as well as my own personal engagement in the markets at the time (i’ve found that it is better to pace yourself and step-back from actively trading from time to time in order to prevent burn-out or over-trading).
