Tight Stops Nightmare!

Quote from Gordon Gekko:

unfuckingbelievable..........shit like this makes me want to quit...but i won't.

here's how my stock closed today........

HOW CAN ANYONE TRADE AND MAKE MONEY :mad:
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the 12/4 to 12/6 uptrend line was broken this morning , with the last dip being about $4.60. With conventional last dip stops , you would have moved your stops from the $4.45 swing low to about $4.58 . If that 12/6 end of day tail actually knocked you out.. then, so be it. You can't control what the market does, you just do what your system requires you to do .. and if you lose, you lose.

Besides, illiquid stocks can move radically if one guy suddenly sells any sizable amount at the market .. hitting every limit buy order.
 
the good thing is that is a nice bottoming candle today. we should go up from here, technically speaking. i do not set hard stops for the very reason you speak of. they can be hit too easily for no forseeable reason.

best,

surf:)
 
On a stock that trades so thinly, stops are not an ideal way to go.
I have traded this one with success. It is definatly only a good swing trade. You got in too late in the trend. Right now it is at a high, and the increase in volume is telling you people are selling it. So jump out and take your profit....
Retail stocks tend to go up before Christmas, and dump in January.
IMHO do not see the bottoming candle or any specific formation.
 
Quote from catman:

BBA traded 122,000 shares today. What I see on your chart is normal for an illiquid stock. Stick to issues with avg. daily volume
of at least 1 to 2 million shares.....bare minimum.
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That also is a common[tricky ]range of stocks under $5.00-that is why I very seldom or dont trade them.

Its difficult to get a good risk reward in that price range;but easy to lose a large percentage of share price.

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Good title Gordon G.:cool:
 
Quote from bobcathy1:

On a stock that trades so thinly, stops are not an ideal way to go.
I have traded this one with success. It is definatly only a good swing trade. You got in too late in the trend. Right now it is at a high, and the increase in volume is telling you people are selling it. So jump out and take your profit....
Retail stocks tend to go up before Christmas, and dump in January.
IMHO do not see the bottoming candle or any specific formation.
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bobcathy1,

i'd like your opinion on 2 things:

1) the 3 volume spikes were all up days. how do you know people are selling?

2) as far as being in the trend too late, how do you know it's too late? you could have said that every day for weeks and the stock has still gone higher. what is the difference between then and now?

i'm not saying you're wrong. i just don't see how you could come to those conclusions so surely?
 
Gekkomon,
i also see no tradeable pattern here, generally buy an uptrend after a two to four day pullback. Cooper and Landry have this
1-2-3 pattern they use which is effective with a two bar stop.
Or buy on the original price breakout, or short price breakdown
with stop at previous bar. Should give you better % wins.
Richtrader, what price patterns do you like to trade?
 
Ps.

Gordon G I would suggest next time you don't enter around$4.50 because that one has dropped from $5.00 to 4.50 in one day .And that's the ask price; no idea what the bid is .

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''Walking ''Gordon G quote:cool:

Murray
 
Quote from Gordon Gekko:


bobcathy1,

i'd like your opinion on 2 things:

1) the 3 volume spikes were all up days. how do you know people are selling?

2) as far as being in the trend too late, how do you know it's too late? you could have said that every day for weeks and the stock has still gone higher. what is the difference between then and now?

i'm not saying you're wrong. i just don't see how you could come to those conclusions so surely?
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1. Those spikes were not present all the way along the uptrend until right now at the top. That makes me think they are selling.
2.The daily MA crossed weeks ago. That signals the beginning of the trend up. Right now the trend is old and prone to failure. The longer a trend continues, the more prone it is to reverse.
3. I am familiar with the stock. The FA is good on it. But the price history is not there to support it beyond this level.
4. Trading cheap stocks is a good way to lose money. Been there, done that:)

Take a look at the daily charts, they show the story. When I swing trade I use a 13 minute for a trigger....but the daily for the actual trades.
 
You "want" but did you ask yourself if the Market wants what you and everybody want :) ?

Keep in mind the capability concept of a process, system or method: you can't force a system to do better than his capability. If your method can't give you an entry point where you can keep small stop then you're a fool to force it. Either you have to filter more either you have to go in upper scale and assume a higher risk but this must be compatible with your capital. If none of these conditions can be fulfilled then you should ask yourself to change the method, choose another market, work for having more capital etc.



>i ask these questions because i am trying to keep my losses >small.
 
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