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Byline: CHRISTINA WISE
Living in the past is never good. For investors, it can be downright foolish.
If you're still expecting your stocks to turn in the same sort of turbo-charged performance they did back in the late 1990s, it's time to wake up.
The heady days of the Internet bubble are long past. Gone too are the trading sessions that could send an unknown, unprofitable company's stock up 50%, even 100%, in just a few weeks.
As the aftermath has settled, even some of the market's leading stocks are making runs that are shorter both in terms of time and profit. Traders need to scale back their expectations accordingly.
Take Bradley Pharmaceuticals. The stock broke out of a base on Oct. 19 last year and doubled in the next 10 weeks, a strong move. But as early as Dec. 21 and 24, it hit new highs on thin trade. In the next few weeks, Bradley gave more sell signals, such as negative price reversals on huge volume. As of March 28, it gave back nearly all its gains -- a round trip in the space of five months. Other stocks have gone from breakout to bust in even shorter time frames.
So if you latch onto a leading stock breaking out of a solid base, keep a close eye on it. These days a ...