So far this has happened to me on AQXP and STXS. However, I got back in time for STXS, but only made a fraction of what I could have made had I stayed in and NOT cut losses.
I'm fearful that I'll be in this perpetual hell of a stock breaking 3.00, then buying at 3.06, then the stock drops to 3.01 or 1.98 and then I cut my losses, and then LITERALLY 30 seconds later the stock climbs to 3.21 and I get in at 3.27 and the stock stops at 3.33
-anyone else have this problem and know how to get around it?
@communist_owl This is normal price action.. Check out this video by @kroyrunner, he explains it very well http://tradetheticker.blogspot.com/2015/06/25-minute-clip-from-my-dvd.html
As Tim says, its not an exact science. I believe each trade is unique. So its not a perpetual hell. You should not take ur chance when the support does not hold. IMO morning and mid day breakouts might behave violently but not the ones near the market close.
@iLLeSt On the contrary, I always take very small position sizes (< 500 shares)
@communist_owl I would try risking about 2-4% of your account value on each trade. That is usually a decent amount to risk. If your stop doesn't risk that, it may be too close.
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