Flack,
I think exit strategies are necessary but are sometimes hard to put into action, and even harder to give hard and fast rules to another trader. But I'd be glad to have you go ahead and give some anyways <gg>.
On Friday, I was doing a few daytrades of BRCM. It was doing a lot of bouncing around, but usually moved in about .20 ranges. Sometimes it would make quick bounces of .10 to .12 which can take you by surprise. At one point in the afternoon, it made a drop of .40 in about 15 secs., then gained about .15 back in another 15 sec. and later went on above the original spot and then closed on the plus side for the day. I guess a strict sell point would have got you out of the stock quicker and with less pain than a panic sell near the bottom, but you still end up seeing the relatively quick recovery and on to what would have been the gains you had been looking for all along.
I also saw CWTR a few weeks ago trade down 10% during the morning (just a steady fall, not at the open), and then gain almost all of it back before the day ended. With hard and fast stop rules in, you end up selling the position, and watch it all come back and even higher the next few days.
I guess my question is are these two situations oddities, or are we seeing this more and more in trading these days???
Thanks for any input.
Jeff |
