I bought the speculative stock $NETE today. The recent high was .29 and my plan was to buy on the breakout at .30. I was too slow, missed my entry and ended up chasing it to .32. Either way it was a breakout and because I was late on my entry, I inevitably had a less safe position in which I had no wiggle room to get greedy. The stock was already over extended and I bought at a 6% higher price than I intended. I should have set my sell target fairly close to my entry solely due to that mistake alone. Long story short, the stock went to .37 and sharply reversed as everyone with a brain, quickly realized the stock was pure trash and exited their position. It went back to .30 in a matter of seconds. I did however hold another hour as it tried to rebound at defined support of .30 but failed. I noticed how awful the momentum was and aimed to get out on another fail bounce attempt to maximize my profit before this thing tanks on the day. Got out just under .34 and made a $0.02/share profit. By the grace of the Profit.ly gods and Market Maker trolls.

 

Moral of the story:

• DO NOT greed on your exits. The round number of .40 looks and sounds good, but you won't always get there as other sellers are smarter than the 90% who lose and will exit quickly when a stock is overextended.
• If you have overextended yourself on an entry, realize that you have less safety and need to be prepared to alter your trading plan/stops without hesitation.
• Take profits quickly. Don't sit there and stare at a gain of 15% and hope and pray for 30%. At the very least, shave off half of your position and lock in some profits.

 

HOPE THIS HELPS!