Please i need help . I just dont understand this

C

cashclay

As you can see on the chart , the stock just flushed out . Im wondering why or what cuases these moves to happen. Luckily for me I was on the short side, but Im afraid of 1 day being on the long side and this happening. Someone told me its bc of stop-losses being taken out. But the areas seem a bit unusual. And why is it with this stock and not all of them ... Perhaps its bc the stock had rotated about 3 times now.

Please I am a newbie trying to learn price action. Be gentle and if you can try to explain it in terms a child would understand. Apprarently in the trading world, I have the brains of a child. Thank you
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This is a straight forward case.

you made many mistakes.

1. the time to trade Biocept was 7 years ago!!!
Now it is extremely extremely late to trade Biocept.

2. now zoom out the chart.
and you will notice that the price is moving in an extremely extremely tiny range.
No amount of technical analysis will help you earn $$$.
This is the stock and this is the region for you NOT to trade at all.

Always look at the big picture first.

3. Biocept is very very low priced.
Do not stretch the Y axis tremendously.
Instead, compress the Y axis tremendously.
This is the part which the trading books never teach.




Choosing the appropriate stock to trade is extremely important.
and Timing is extremely important.
 
Last edited:
maxinger said:
you made many mistakes.

1. the time to trade Biocept was 7 years ago!!!
Now it is extremely extremely late to trade Biocept.

2. now zoom out the chart.
and you will notice that the price is moving in an extremely extremely tiny range.
No amount of technical analysis will help you earn $$$.
This is the stock and this is the region for you NOT to trade at all.

3. Biocept is very very low priced.
Do not stretch the Y axis tremendously.
Instead, compress the Y axis tremendously.
This is the part which the trading books never teach.




Choosing the appropriate stock to trade is extremely important.
and Timing is extremely important.
More...

Maybe he was just looking for an "atta boy" for catching the 1-day drop... and slipped that declaration into his question. (??) (Not much future in shorting a stock already down -99.95% from its high.)
 
Forget about why it happens, accept that it can happen, and make sure you can handle being on the wrong side n times in a row or to some reasonable risk management.. you cant avoid these, no matter what universe you're trading, you need to accept it, and size accordingly.
 
I wouldn't be short crazy amounts of shares of a sub 5 buck biotech company, and I probably wouldn't be long crazy amounts either. I would place maybe 2-3% of your portfolio value in something like this. Not worth the risk.
 
S2007S said:
I wouldn't be short crazy amounts of shares of a sub 5 buck biotech company, and I probably wouldn't be long crazy amounts either. I would place maybe 2-3% of your portfolio value in something like this. Not worth the risk.
More...

When you can buy a stock cheap enough, it's like an option that never expires (unless the company goes bankrupt).

Example... years ago, MiniScribe was an offshoot of IBM in hard drives. They had difficulty and the stock sold down to 5/32. But within a couple of years it was $80.

Even Citibank traded <$1.00 in the finacial mess of 2008-2009.

Personally, I've got pot stocks on my radar for a big market smash when they can likely be had for "pennies or dimes". And while they won't be "rockets" like tech stocks in a recovery, they won't be going away as people like to intoxicate themselves.
 
Are people manipulating the stock ? Or is it stop losses that causes these heavy sudden falls? People have told me when a stock rotates , as this one did, there are alot more buyers or sellers adding their stop losses which can cause a stock to have sudden death drops like these.
Just wondering what your take on it is?
 
Scataphagos said:
When you can buy a stock cheap enough, it's like an option that never expires (unless the company goes bankrupt).

Example... years ago, MiniScribe was an offshoot of IBM in hard drives. They had difficulty and the stock sold down to 5/32. But within a couple of years it was $80.

Even Citibank traded <$1.00 in the finacial mess of 2008-2009.

Personally, I've got pot stocks on my radar for a big market smash when they can likely be had for "pennies or dimes". And while they won't be "rockets" like tech stocks in a recovery, they won't be going away as people like to intoxicate themselves.
More...


I guess spreading out your money on a few lottery plays can help in the long term but it can take quite some time before the one you have to make that spectacular move to infinity.
 
S2007S said:
I wouldn't be short crazy amounts of shares of a sub 5 buck biotech company, and I probably wouldn't be long crazy amounts either. I would place maybe 2-3% of your portfolio value in something like this. Not worth the risk.
More...
%%
That;
or long that one. ITs not all right to be in little bitty stock , especially if down 99%......................................................................................Its OK to listen to Little Bitty song , big o town or little bitty city/Alan jackson /67 million hits:caution::caution:
 
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