Quote from ziyan:
I'm still a novice trader. The market has been very good to me for the most part, but I keep getting shaken out of highly profitable trades prematurely (2nd straight time this month). I use discretionary stops based on daily profit loss percentages to around 2.5% (?which is substantial?)
Here's my most recent trade:
SZYM BOT on 3/7 @ 11.88 (knife-catching? I know. sorry guys! Thought I saw good support from previous periods)
3/12: Gap up @14.18, breaks 14,
breaks 13.80, I type in my order,
breaks 13.75, I brace myself,
breaks 13.70, I vomit. and hit the sell.
SOLD @ 13.65
4:00 pm closes over 13.90. I curse the world.
Today. Closes over 14.43. I am too chicken to get back in saddle. (trading on cash acct w/3-day settling) and I curse the world some more.
Now part of me pats myself on the back for making a profitable (albeit riskily initiated) trade. The other part kicks me for being a slight wuss in a bull market and not using wider stops.
Can I please get some feedback on this trade?
Any & all constructive criticism appreciated.
Thanks so much!
Za Trend trader;
Well, frankly i wouldnt call buying @50 day moving average area a ''falling knife'', but a buy on a ''no earnings ''stock ,can easily result in''no earnings'' especially since you pretty much bought it under 200 dma/tried to catch a falling safe.
You may want to study a 11 period ema;
especially since it can preserve some profit. Not that a new trader should auto buy under 200 day moving average.As Mr Alan Farley says, ''bears[sellers] live below 200dma''.....................
Sorry, but 2.5%/profit % stop on a $11 stock sounds like noise.Wider stops on a buy below 200dma???????-No thanks
Nice buy, if it was above 200dma;
or if it was SLV or silver, i may/may not buywith discretion below 200dma, but not a no-name no- earnings stock. Remenber 11 dma helper.
Wisdom is profitable to direct;hope this helps.