"got a bid at $2"
Just a comment here. For the thread... not a critique!
When you deal with low priced equities, I have been taught a rule to never place limit buys or sell at the round $ number, because these round numbers create always some resistance in the human mind (despite TAs).
So, as an example, $2 is a bottom "psychological" resistance for ALTA and the smart money will rarely place a bet at $2 but just above $2.
If ALTA dives below $2 this week, then the lower "psychological" resistance will be 1 3/4, independent of TA (anyway because it would be a new low for the year, the bottom resistance is really unknown). If you guys follow my babbling, then you would not place a buy order at 1 3/4 but just above it (i.e. 1 13/16)...
I hope that we do not slip to that level, by the way!
For sell orders during an upturn, if $3 is your "target", then 2 15/16 maybe be the way to go.
May be I am wrong about all that. This is the way I trade low priced stocks. I would be glad to be criticized!
Good luck all
FHG |
