[acito616]

Because of the previous few posts about the MA, I thought it might be useful to put the list up from page 129 of the book of Stan's Don't Commandments as a refresher, as it's covered on this as well as other useful tips on successfully using the method. They are:

• Don't buy when the overall market trend is bearish.
  
• Don't buy a stock in a negative group.
  
• Don't buy a stock below it's 30 week MA.
  
• Don't buy a stock that has a declining 30 week MA (even if the stock is above the 30 week MA).
  
• No matter how bullish a stock is, don't buy it too late in an advance, when it is far above the ideal entry point.
  
• Don't buy a stock that has poor volume characteristics on the breakout. If you bought it because you had a buy-stop order in, sell it quickly.
  
• Don't buy a stock showing poor relative strength.
  
• Don't buy a stock that has heavy nearby overhead resistance.
  
• Don't guess a bottom. What looks like a bargain can turn out to be a very expensive Stage 4 disaster. Instead, buy on breakouts above resistance.
  

isatrader,

My breakout would have been set at the 52 week high around $4.75 not the 4.25 you show, odds are my stop would have been at your breakout point. I guess the thousand dollar question is, would I have bought back in a few months later when it reversed and surpassed the new $5 breakout and started its stage 2 continuation move for the 800% run. That's my must difficult trade is the buy back in after I've been stopped out from being early or setting my stops too tight.

jason