well said..set your stops immediately after entry..If you get taken out right away, again and again, you need to restudy your entry point...Little losses are like water off a duck..We must avoid the big
losses...Never give back a winner, trail it with a stop...Play your stops under intraday highs or lows, or a certain percentage under entry point, or in congestion areas..As Skane stated you have to be your own trader, follow no one..The other guy trades differently than you, and if you follow the stocks he is in, you'll get burned, because he understands the stock his way and will most likely be out before you with profits or out with small losses..
Now, My short today...ANCR at 29 1/4...Got taken out with a 1/4 point loss on first try, but learned from it..Now sit with open position short..
On a mature trend(ADX over 40) use your Ultimate Oscillator to help determine reversal areas...On ANCR, the 14 period ADX is at 57..This is a very mature trend and subject to violent pullbacks..The Ultimate Oscillator is down while the stock price is up today..That is a bearish divergence...Look also at the 14 period RS chart and note that although the stock made a new high, the peak is shorter than when the stock was at a lower price...Same goes with Simple stochastic chart and momentum chart..This tells me the upmove does not have as much force to the upside..
6/21/99 stock high at 24.75 RS at 88.152
6/29/99 stock high at 29 15/16 RS at 82.79
Plus the stock did not close in the top 25% of its daily range..It would have to have closed above 29 to get that rating..
Now if the overall market doesn't continue to go wild tomorrow, this stock should move downward.....
Finally, if anyone knows the status of the class action lawsuit on ANCR, please let me know...I sent in a form recently, that will entitle me to a settlement of claims from the past...I am sure with recent price action,the settlement checks will not phase their future...
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