Facebook set another new all time high today and settled above $52 per share.
Some of our followers are long from below $20.
We would trail a stop below each successive weekly swing low… the most recent is shown by the red arrow.
Facebook also illustrates the difference between traders who trade fundamentals vs those who trade price behavior. One of the world’s preeminent valuation experts bought Facebook at $18… but called for an exit around $38. To be sure, he was just sticking to his process, but its a process that leaves far too much on the table based on the theory that it’s possible to predict what the market will feel a stock is worth.