Years ago I picked up a cool rule from Pradeep Bonde @PradeepBonde : Avoid buying a stock that’s up 3-4 days in a row already.
Then as I got to find and study @Qullamaggie , he suggested the same.
Once you unpack it, it’s quite logical. The initial explosive burst of momentum is where you get your cushion in.
The risk-to-reward and asymmetry changes.
Compare buying $CRDO at the inside day off the 21, to trying it Friday.
Of course, some stocks will run 5,6,7 or many days in a row. But as a general rule, I try and avoid chasing.
@KynaKosling Thanks a lot Kyna. I’m still trying to figure out cause I live in Europe and can’t most of the times not trade during the open. But then the stops probably will be to wide when I can.