RE: Beginners Questions
(2014-02-19, 02:44 PM)acito616 Wrote: 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.
That's one of the harder things for shorter term traders, as you'll likely be stopped out of many early Stage 2A moves, as after the initial advance it often pulls back the whole way to breakout point, and like in the CSIQ example it fell back well below the breakout level. So if you trade that early breakout point then you'll need to get back in when it resets up and breaks out again with heavy relative volume, which as you say is hard mentally if you've already had a loss, but necessary as a lot of the best Stage 2 moves have early shakeouts before the momentum phase. But this is why Weinstein's method suggests that traders should focus the majority of their positions on Stage 2 continuation moves that are already in good quality Stage 2 advances, and less so on the investor Stage 2A entry point. So it depends whether you are a trader or an investor to the type of Stage 2 entry point you should be focusing on.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.