Many times we can miss the first opportunity when a stock begins it's price movement, but that shouldn't keep you from looking for the next entry opportunity.
A large portion of trades will make an initial move, consolidate and provide you with a good entry point relative to the initial stop. Below are 3 examples of positions we own that are giving second chances.
The key when taking secondary breakouts is to have a proper stop loss set. In all 3 examples the yellow trending line can act as that initial stop. If you are using a %risk model to determine position size you can perform a quick calculation to know how many shares to purchase.
Let's take TNP and determine our trade size.
Portfolio Value = 100,000 Risk%=.50 Current Price 9.60 Initial Stop Loss=8.72
100,000 x .50 =500 (the amount we're willing to lose on this trade).
9.60-8.72=.88 which is the difference between our entry price and initial stop. We then take 500/.88 which =568 shares. 568x9.60=5,452.80. At this level we are going to allocate a little over 5.4% of our capital to this trade. Even at a 5% trade the size is large enough to have meaningful effect on our total portfolio return if the stock continues to run another 20-50% higher. We also have the option to increase our risk% even higher, but remember that this is a secondary breakout.