I think a better strategy for trading this one is too place your stop at the low of $2.95. I don't see any reason to hold the trade if it breaks through this point. History has shown that when it breaks through the point, (i.e. $6, $5, $4, that the stock tends to head south very quickly. If history should repeat itself, the the stock could easily head down to $2. ) A closer look at this strategy reveals it would have cost you .10 per share at $5, you would have been stopped out of the stock 7 times at $4. Costing you a total of $.49, (assumming commissions of .01 per share, and that you would have declined to take partial profits at a .20 profit), and 1 time at $3, costing you .07 per share traded. At each point, this strategy got you out of a bad trade , preserved your capital, and gave you a defined plan to get back in so that you won't miss the move if and when it happens.