How Would You Trade GOOG to Lock in Profit?

I am constantly trying to come up with good ideas to trade stocks to lock in profit and I try my best to share my ideas on Long and Short Investment. I would love to hear your opinion on my recommendations, whether it is good or bad move.

Two weeks ago, I posted an article “GOOG at $600 Resistance Level” and soon followed by placing a short trade at $600. But the STOP-LIMIT got executed at $610, generating a loss of just under 2%. Believe it or not, I am considering another SHORT trade on GOOG? Why, do you ask? Let me explain and see if you agree…

• GOOG surpassed it major resistance level at $600 and is forming another resistance level around $625.
• The volume level has been on the decline ever since GOOG made its move higher since March 2009 and it is still declining today.
• In 2008, the average volume was around 10 million. In 2009, the average volume was around 5 million. Recently, the average volume has been near 2.5 million.
• And yet, stock price is continuing to go up higher and higher. When a stock makes a strong move higher, there is a strong volume support as well. But, this is not the case with GOOG.

Therefore, this is my strategy on GOOG. Place a SHORT trade around $625-$626 range with a tight STOP price. I recommend placing a COVER trade with a LIMIT-STOP order at $630. What is your opinion? Do you think GOOG will continue to go higher beyond $630 early next year? Share your strategy on GOOG…


Other Related Articles:
2009 YTD International Fund Returns
Prepare to Add GOLD to Your Portfolio Before Too Late!
Iraqi Dinar Currency Sale on the Rise
SHORT Opportunity: GS, ASH, LUV
Stocks with more than 1000% Return in 2009
High Potential in China