Ken,
Could you please explain to me what I missed or did not see in this particular trade.
This morning, I looked over your morning calls and saw good action on a dumper, AZPN. Gapping down approx. 40% in the morning and still showing minor selling till it hit around $7. I know I probably should have bought at the pause and then rode it up for the gain of about 3/4. I hesitated however, because I was expecting another bottom, below 7.
Just after 11am EST it reached another bottom at about 6 5/8, or at least I thought it did. There was a substantial pause and wavering of price. I knew this had to be the last bottom. Needless to say, the sucker tanked again right after I purchased it, to seek yet another and its last bottom. I was able to get out with a 3/8 loss. What should I have been looking for, that I neglected? If I kept it and did not follow the cardinal rule referencing "stops", I would have gotten my $'s back, after the eventual end of day buying.
First of all I do not have level II, and I also trade at work which also limits my time to watch the stock. I know its not the idea scenario, but its the best I can do for now.
When a stock is wavering back and forth at a pause, and there is no clear direction on a dumper. Is this not a sign that buying is about to take place. Remember those without level II cannot see the volume of buyers and sellers.
If I did not purchase and just waited for the buying as it did at $7 in the morning, I would have missed the trade. This is why I believe you must go by your gut feeling at the pause in some circumstances. Obviously I was wrong again. Please shed some light on what I am doing incorrectly.
Thanks,
Gary |
