Here's my thoughts on a TNA short trade earlier this week.1. Set the stop just above the high so that it will have to make a new high in order to stop me out.
2. Declining volume on the way up suggests that the buyers are not strong.
3. The trade works. As it falls I double and triple up because that is how I make money - by adding to winning trades.
4. Cover after the volume spikes. That is when bounces happen. A nice even dollar level is more reason to cover. A multi dollar gain is even more, more reason to cover.
