thanks....answers: 2) using my "PSYCLE sm" trading concept, my "stops", while quite seriously adhered to, are hardly EVER actually "entered" beforehand....they are "serious mental stops", PRESET B4 buy issue....why ? for the reasons you mentioned, and,
those times when the vast majority of Long issues I have recommended over many years, "break down", DO bounce back up towards previous support levels, even if they eventually go lower still.... so, my people actually have TWO chances (probably 90% of the time) to "sell/cut loss" on an issue which does not rise as expected....once, "on" the break (and, like your insight said, on a cheapie, that can me significant....most of my depressed ideas are in the 5-15 price area, making a 1/4 point loss "small"), and again, on the rally back towards the brake level, and, again, on the bounce back upo after the break, towards the previously-broken support level.... hope this is clear....
we "PSYCLE sm" traders figure, our risk on a real cheapie has GOT to be more than on a higher-priced issue, so we "accept" this extra risk, knowing, if we diversify properly, we WILL hit more "big winners" than "smaller losers" over time anyway, and therefore we will be more than compensated for such.... neat, huh....
as to what my "PSYCLE sm" is, in its briefest form, due to space limitations here: "it is a combination, of long-existing, repeating, sequentially staged PATTERNS, of chart, volume, human, and media behaviors, using a lot of PSY-chologigcal and contrary nuance, and industry group rotation, to come close to buying Long, near historical bottom formations, and buying Puts, near historical top formations, while eliminating all potentially damaging Emotional "stuff", and ignoring 95 % of all "external/fundamental" information, of little or no price-predictive value"....whew....great.
last, I really DID have ENCD, and RMDY, as put/shorts (and many others) near top, and, now, really see no "clear" signals here on them, nor XIRC, but I wish you luck....and I also, missed AVID, because didn't form good enuf "base", such is life....and took a small loss last year on it....been plenty of others around, long and short.
JTS is just one, "exhaustion low" issue recently....again, check my suggestions-with-close-stops, on SHVA, DSPC threads....
I TEACH this to help others, and work with others, and can elaborate more, if you e-mail me, if interested.... best wishes, |
