11:44 AM – Getting out of this stock as it breaks below the 10 DMA. Breakouts that don’t follow through after the initial breakout have a much lower chance of succeeding.

Part of my decision is also portfolio management — I generally see better overall gains when holding fewer, stronger positions.

For now, I’m rotating this capital into setups with stronger technicals.

ULTRA Trader’s Tip: Respect Failed Breakouts

• A breakout that fails quickly is often a red flag.

• Failed breakouts rarely recover fast, and capital tied up there can cause opportunity cost.

• Cut the weaker name and redirect into stronger trades with momentum and support.

CLICK/TAP CHART TO ZOOM
Chart services courtesy of stockcharts.com. Annotations by James Taulman.

 

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James had served as Editor-in-Chief of the first independently licensed website to offer stock reports and services based on the CAN SLIM® investment system.

Since the late 1990s, he has been analyzing growth stocks and providing investor-focused research rooted in time-tested technical strategies. Over the years, James developed a strong ability to quickly and accurately identify high-ranked trading candidates using this proven approach.

He has worked with a wide range of investors — from professional money managers to individual traders — helping them apply this disciplined system in real-world markets.

James has delivered weekly market commentary as part of the “Your Money Matters” radio program, broadcast on both ABC and CBS radio networks, and for a time was a daily guest on the Investor’s Edge radio program.

Today, he is the developer and founder of U L T R A — a robust yet easy-to-use trading system built to identify and manage high-probability stock trades based on strict technical rules and real-time alerts.