[pcabc]

And so it gives you warning that you should consider taking some profits on stocks you've made good gains on if they look extended and tightening up stop losses, as the stocks that do break down can have sharp declines as people exit a lot quicker than they enter, especially in momentum stocks that have had very strong Stage 2 advances and gotten extended.

I may have overcooked the stop losses a little as I set a tight stop loss under what looks like a mini-head and shoulders on Entertainment One (ETO.L). Set it early this morning and it promptly hit it in the afternoon. However, this share has done well for me and I have banked (without checking) > 30% so can't complain. Though I have been an investor the stop I placed to my eyes looks like a reasonable traders stop loss. Therefore, though the book states that you should choose a plan and stick with it I'd assume 'tightening your stops' means 'switch to aggressive trader type stops'.

I must admit I'm feeling a bit like I should not have set such a tight stop as this share has done good for me. But that is perhaps emotion, and the signs are stating caution.

I have a couple of funds and a couple more shares (which I can't put stop losses on) which I am monitoring very closely, I'd not be surprised if one or even all stopped out this week.