sandbag, if a trader has been stopped out of a stock, and it reverses and moves to upside with continuing momentum, the trader will again jump on board.. A trader must divorce all emotional attachment from any stock he trades..If the technicals speak, the trader listens, even if it is the same stock he got burned on a few moments before...
However, sometimes we must edit the 3 to 5% rule of setting an initial protective stop after we enter...Case in point was AKSEF...
On that one, a volume study was needed to be done to determine, where the MMr and traders would cause the reversal to take place...Emotions were running wild, and any stops set tightly would be immediately taken out..A volume study revealed that major support during the accumulation phase was at the 1 3/8 level...Thus, one would set his stop in the 3 to 5% level below that price figure...That is what I did..I was disappointed in my first purchase at 1.62..That was too high..But my second in the 1 1/2 area, was more where my buy price should have been...I am a firm believer that oil prices are now at their bottoms, and I will be watching my trading favorites closely,
MDCO,PKD,etc....Mark |
