Breakout re-test Long idea for DSGX

BluePipSquad Updated   
NASDAQ:DSGX   The Descartes Systems Group Inc
This is my first stock trade idea. I will try to post at least one stock idea per week and at least one FX idea per week. I will briefly share my philosophy on stocks. We want to follow the what the general market is doing. I look to the S&P 500 as my general guide. Right now are in an uptrend, so we want all our stock trades to the long side. Next, we want to focus on the strongest sectors. Technology has been recently out-performing the index, so we want to look for a stock in that sector. Next, we want to narrow our search down to the industry. The software industry has been outperforming the Tech sector. Finally, this particular stock has been out-performing it's own industry, which makes it a candidate for trading. Now we need our charts to give us a valid entry signal. This one will go on our watch list as the price is still moving up. We want to try and get in if it retraces back to test support, so we will set an alert on our platform to let us know if price comes back. For stock trades, I recommend limiting the allocation of each position to about 6-8% conservatively, and no more than 10% if you are aggressive. Since we will hold through earnings and news, etc., we want to limit the chances of one position having a huge impact on our portfolio if we get a bad price gap. As far as the risk per trade, I recommend no more than 1 or 2%. Note that if industry strength tapers off by the time we get a signal, we should cancel this idea, so watch for both price and industry performance as industry has a huge impact on stock moves. It's up to you on whether you want to use a hard stop loss or mental one, but there are obviously pros and cons to each method.
Order cancelled:
Price taking too long to pull back. Best we look for another opportunity.

Follow me on Telegram for more trade ideas

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.