I currently own AXR because they have a killer growth in the company and EPS and I was planning on holding on to it for a few months. Today it took a 21+% hit and had a bad breakout. Now I did read How Charts Can Help You in the Stock Market by Jiler and I forgot what he said about bad breakouts. A couple of weeks ago, IAAC had a bad breakout and it is still going down with a big volume increase (just like AXR) with selling. I also know that you should sell if the stock has gone down 7-8% since the price at which you bought it at, but this is a great stock, I think and I am not sure what to do. Any help would be great. Thanks.
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Help: Chart experts also please
- Thread starter MTI_44
- Start date
The only way you can have this:
And still think this:
Is when you have this:
Your current position is blinding you to reality. You should have sold quite some time ago. If you wouldn't buy it today, you shouldn't hold it. (And if you wouldn't sell it today, you shouldn't hold a short position in it.)
-Raystonn
it took a 21+% hit and had a bad breakout.
And still think this:
but this is a great stock
Is when you have this:
I currently own AXR
Your current position is blinding you to reality. You should have sold quite some time ago. If you wouldn't buy it today, you shouldn't hold it. (And if you wouldn't sell it today, you shouldn't hold a short position in it.)
-Raystonn
Quote from MTI_44:
I also know that you should sell if the stock has gone down 7-8% since the price at which you bought it at, but this is a great stock, I think and I am not sure what to do. Any help would be great. Thanks.
Stay away from stocks. Invest in etf's or mutual funds until you learn how to trade.
Quote from HolyGrail:
Stay away from stocks. Invest in etf's or mutual funds until you learn how to trade.
The other stocks in my portfolio have been doing great. It is just this one stock that I am stuck on because it never happened before. I have been successful at trading so I can trade.
Quote from MTI_44:
The other stocks in my portfolio have been doing great. It is just this one stock that I am stuck on because it never happened before. I have been successful at trading so I can trade.
If you allow a stock to drop 21.5% without doing anything then I would say your previous success has more to do with luck than skill. Risk management is more important than stock selection.
Quote from HolyGrail:
If you allow a stock to drop 21.5% without doing anything then I would say your previous success has more to do with luck than skill. Risk management is more important than stock selection.
It dropped 21.5% within one day. I never keep stocks hoping that they will go up again because I have learned all of the psychological thinking involved. If I was sitting at my computer all day, which i was not today, then I would have sold it early in the morning when it began to drop.
If you take a look at the chart, it has been doing really well. Also, take a look at the fundamentals, it is a great stock.
I am not holding onto this stock hoping that it will go back up because I know better. What I am debating is the fact that it is a very good company. If I did not currently own the stock, I still would consider buying it but not for a couple days. I would wait to see what the stock did.
And lastly, NO, I did not get 80% returns last year from thowing darts at a couple of stocks on a sheet. I am very good at risk management. When a stock drops that much in one day and you have no access to a computer, there is nothing you can do besides set a trailing stop but I, and millions of other share holders, didn't see this coming....
Quote from MTI_44:
I am very good at risk management. When a stock drops that much in one day and you have no access to a computer, there is nothing you can do besides set a trailing stop but I, and millions of other share holders, didn't see this coming....
That's what stops are for. Why do you think the stock dropped so much? Everyone wasn't sitting at their computer, they had stops. Allowing a stock to drop 21.5% without doing anything is indefensable. Saying you are good at risk management is laughable.
Stops are for things that you don't see coming. It's their purpose.
in my opinion on chart reading your stock doesn't look good. Its gone up for 2 months almost in a straight line. Stock closed on low of the day and there is no real support for another 30 points.
Now some people don't believe in chart reading and say its a waste of time. So I ask you why did it go down 21%? Was it news or..... Did you watch it at all today? seems you don't know anything about chart reading or else you wouldn't be here so why ask about it since that is not your way of trading a stock. It would like me saying "i am a chart trader and only trade the chart but can someone tell me what the p/e of xyz stock is".
So my opinion is if you liked it enough to hold on to it at 140 I would really love this discount the market gave me today and buy in more unless there was a good reason why the stock did what it did. Again though if i was a betting man I would say this stock has more to go on the downside just based off the chart. Was a failed break out of a 1 month range and broke all that to the downside. Happy trading
Now some people don't believe in chart reading and say its a waste of time. So I ask you why did it go down 21%? Was it news or..... Did you watch it at all today? seems you don't know anything about chart reading or else you wouldn't be here so why ask about it since that is not your way of trading a stock. It would like me saying "i am a chart trader and only trade the chart but can someone tell me what the p/e of xyz stock is".
So my opinion is if you liked it enough to hold on to it at 140 I would really love this discount the market gave me today and buy in more unless there was a good reason why the stock did what it did. Again though if i was a betting man I would say this stock has more to go on the downside just based off the chart. Was a failed break out of a 1 month range and broke all that to the downside. Happy trading
Quote from HolyGrail:
Saying you are good at risk management is laughable.
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I don't know what your problem is tonight, whether you haven't got laid in a while or what, but I came onto this forum looking for help and your thowing all of this BS at me for no reason. I was trying to defend my case with why I am on the fence with the stock and all I get is BS from you. Other people are helpful and I appreciate it but I don't need your crap right now.
How do I know even to listen to you? I don't know your background and you don't know mine so you could be making all of these comments about my risk management and stock picking ablility and you don't know sh*t. This website was meant to have traders help other traders and a discussion board and you're not doing any of it.
Lay off.