Kosmo,
Agree, way over-hammered. Of course, sometimes they do that for a couple of months, with this stock!
I use MB Trading, it's a terrific direct-access firm [www.mbtrading.com; no affiliation].
T.A. is part of it, but with the internets, they trade very wild, it's not enough. Studying T.A., price action (Candlesticks) daily and intraday, is just the beginning - they are very difficult stocks to trade. I didn't start trading net stocks until 5 years trading experience! But, some have had decent luck with less experience.
For some good T.A. books, visit www.intelligentspeculator.com, www.hardrightedge.com, or www.pristine.com. "Daytrading into the Millenium" is a good solid, overview book.
If I were you, I'd probably give it into the high 130's intraday. If it closed below $140 I'd get out. Once it moves up (closing prices), I'd move my stop closer until you have a break-even stop. But there is no happy formula for this beast, it is typically so volatile. As soon as you get stopped out, it may reverse and run like crazy. The only formula that really works with YHOO is get on the horse and ride it, then do what works for you. And (I recommend) don't get on, until you've ridden a lot of horses. Otherwise, better to position-trade it with a small amount of risk capital.
Good luck, -Steve |
