3D Up-DDD-ate

A look at the chart says it all.  Since recommending DDD during our weekly update on Sunday, the stock is up more than 23%.  For those keeping score, that's 13% higher than the annual return of the S&P 500.

We had originally set a price target for the stock at around $18, because that is where we saw there had been previous resistance.  However, the stock hit our price target so quickly, we decided to re-evaluate at that position.  The stock has barely paused in its ascent higher, and it appears this growth can continue.  We have placed a new target at $22, and plan to hold into another move higher, with the ability to lock in a monstrous win should the growth slow.  There is a risk of a small pullback here, but we are willing to take that chance in order to let this winner continue to win.


When you take a position and it works immediately, it is difficult to refrain from selling the gain.  Most people anticipate that their wins are temporary, and don't trust themselves to let the trade work over time.  Selling too early can prevent you from realizing big gains, and substantially limit your upside.

Think of it like this.  A baseball player that only steps up to the plate to try and hit singles is going to have a much harder time scoring than the guy who swings for the fences.  Stocks are the same way.  If you let your winners run, and limit your downside with positions that don't go your way, you are setting yourself up for maximum gains.