To each his own time frame and all, but when a $25 stock "rips up" 5 cents or "tanks" for 10, you know something somewhere is off. Sorry about what happened, but I agree it would have been inevitable and will happen again soon if you don't drastically rethink your risk parameters.
I am still confused, if the 20-30 cent move is small and i am on the wrong end of it twice or 3 times with 7k...That adds up to alot of losses either way....
Giannos.... I'll get right to the point, so there's no confusion. It's apparent to me that there's enough of that already. You need to get yourself a bona fide trading plan. (If you've got one, you need to stand down for a while and do some strong reevaluation of it.) Good luck!
Giannos, 20-30cents move in a 25dollar stock should not have the impact to "blow you out." You're trading size you can't handle. when i opened this thread, I thought you got killed by some big mover. And when you wrote that "AMAT ripped you apart yesterday," I thought AMAT had a giant move. But then I looked at the chart, and it really barely moved. Very insignificant, at least. But if that kind of insignificant move was able to "rip" you apart, then you're really gonna get your bottom ripped if a REAL move ever happens. Bottomline: you should be trading smaller size.
Seems like since he worked at Swift for rebates, he's gotten confused about position size and risk management (something they probably don't teach/practice there).
thanx that makes sense to me.....It wasnt the "moves" that really killed me but my indecision to stick with a plan... ( Amat was more or less a few SEVERE f*ckups....tried to buy and ended up short, tried to cover, shorted more......ect...).
Today I lost 2k, but the rest of the week has also acumulted many large losses and the revenge got into me to trade more size and try to recover.....
Start by reading Phantom of the Pits. If you don't know the price where your position is wrong, then you shouldn't be in the position. Also, if you are betting more than you can stand to lose when that stop price gets hit, then you shouldn't be in the position. RISK is the brakes on this fast car we call the "market". It is always nice to jump into a faster car (more size) to drive around the track a few times, but if you don't know where the brake is and when to hit it then you might end up in a pile-up.