Monday, October 8, 2012

Borg Stocks and Trailing Stops

Last year it was PWR, MET, and AAI
This Year it's LMG, MAKE and APM!

Don't you just love BORG stocks?

For those of you who don't know about the Borg from the Star Trek Series, 
Well.. Borgs are the merciless living nightmares of the vast galaxy that either assimilates 
or destroys any sentient race in its path.

And the Borg's favorite pickup line?

Yes. Once the Borg Collective makes a move, resistance will be like a hot knife through butter.

Borg Stocks are just like that

They usually manifest themselves after a breakout from an ATH (All Time High) Resistance or a Multi Year Resistance. They make gaps as they go through the days, and even defy the natural laws of the RSI Gravity.

The catalyst for this phenomenon is usually unknown especially during the rise.

So how do we play with these bad ass stocks?

Buy on Breakout and Set Trailing Stops.

I don't know about you but this works for me. 
There are many ways to set trailing stops. 
Find that which suits your trading style best.

APM Chart

APM Chart 10.8.2012
APM Chart 10.9.2012

Be sure to SELL when your stop is hit.
Trust me... You don't want to be holding a dead Borg.


  1. nice post boss zee. keep it up

  2. good read - jwara

  3. great post. I learned something today. I will try to apply this starting tomorrow. thanks :)

  4. Thanks ZF and I would try this >

  5. Thanks ZF for this... happy to have read this

  6. Boss Z, you really are a blessing in disguise!! Thank you for all your blogs.... All are appreciated and will share with my friends...

  7. Hello. What will i do if my stock with more than 30% loss and has been stucked with me for months already?

  8. Got bounty of wisdom here. Thanks Sir.

  9. Is the stop loss triggered at the end of the day? Or will you still cut loss even during intraday as long as it goes below the closing of the previous day? Thank you.

  10. This post made my day! Will apply this learning from now on!!!

  11. wow.... simple buy powerful learning... Thanks

  12. How to be a part of ZFT ? Im so much interested

  13. thanks ZFT for all the blogs. will forever be grateful. God bless you and your family