Scrumpy... I'm sorry you got stopped out of your DCLK, especially at fire sale prices.
I've stopped using stop losses just for that reason. Last February during the choppy market, I got whipsawed so many times (losing money over & over), that I started to feel there was a game going on that I hadn't learned how to play. (I think the MM's can 'see' the stops, and they intentionally take them out.)
What I've finally learned is not to set stop losses, and to hold tight during a correction. I know a lot of books and professionals say you should set stop losses, but on the very volatile stocks it's hard to determine the right point, so you don't get whipsawed or taken to the cleaners. One has to plan to stay long and ride the storms, or learn how to read for the tops and bottom, like zalesky seems to have mastered...
The bears will scare you out of your stock with fears that the bottom will fall out of the internet stocks. But I've seen internet stocks bounce off their 21 day moving averages over and over again. In fact, when we go into these corrections, I look at a chart to see where we might go based on moving average and support areas (it provides a little comfort). We're in a bull market trend, we've got chopiness from rotations and uncertainty... but the internets and the best tech stocks will prevail through the year, IMHO.
And please forgive my terse comment on bears. I'd was just alluding to the fact that a lot of folks probably started shorting the internet stocks on this latest rotation/correction, and I'll bet they were surprised when DCLK reversed.
The NAS went up 5 days, down 3... it's time for up.
regards,
laura
P.S. I'm REALLY sorry about your loss on DCLK. |
