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Byline: Jonah Keri
You followed all the rules. You chose a leading stock ina leading group, with great fundamentals, breaking out of its base on heavy volume. But something went wrong. Instead of scoring huge gains, your stock turned tail and shook you out with a 7% loss.
It's a humbling experience. Once full of confidence, you're now wondering ifyou'll ever find the next Cisco. And one thing's for sure, you say: "I'm neverbuying that dog of a stock again!"
Don't let emotions get the best of you. Instead, ask yourself: What went wrong?
Everything may have looked fine on the first go-around. But maybe your stock's base wasn't as sound as you first thought. Maybe the stock needed to prove its mettle for a few more weeks to raise its Relative Price Strength Rating a notch.
Most damning of all, the market may not have been ready to rally or was in poor shape. Nothing torpedoes a stock quicker than a market gone awry.
Could your stock be worth another look down the road? Sure. In many cases, the second -- or even third -- breakout's the charm.