What’s everyone’s take on Follow On strategies in trading?
I’ve been experimenting with Follow On investments lately, but I’m not sure if I’m fully grasping the concept. I’ve seen mixed opinions floating around. Some traders swear by it, saying it’s a solid way to capitalize on momentum after an initial move. Others seem to think it’s just a recipe for disaster, especially if you don’t have a solid exit plan in place.
I’m curious about your experiences. Have any of you had success with Follow On trades? What do you look for before deciding to follow on? And for those who’ve had a rough time with it, what went wrong? I’m just trying to find a balance in my approach, so any insights would be super helpful!
Comments
I've dabbled in Follow On strategies too, and I think it really hinges on timing. If you jump in right after a strong move, it can pay off, but I've also gotten burned when I didn't have an exit plan. I usually look for volume spikes and confirmation from other indicators before I commit. It’s a fine balance for sure—definitely not for the faint-hearted!