If you were long 1000 shares of GE on April 10th you would not have felt safe on April 11th. Point is, never think that any stock is safe, there is always risk to be managed.
Firstly, let me say congrates to your trades. Sure does feel good when you have an idea and then take it to the next step of execution. Note that GE is like any other stock out there. it CAN fall through support and then what will your plan be? do you have an exit that is a loss? OR will you go from trader to investor if the stock keeps going down? These and many more questions you need to be able to not only answer for yourself but be able to follow through or you WILL become an investor and not a trader. On another note you may want to look at Interactive brokers or some of the many other brokers that pay rebates for adding liquidity (posting non marketable limit orders hoping that they will get lifted) Had I placed the same orders with my broker IB I would have paid about $1.50 on entry and about the same on exit. $3 is a lot less than $20 especially if your doing it 40-50 times a year. Best of trading to you and READ as many books as you can. Bob
I think GE is a good stock to trade if you want to sleep at night, which I do. Look at how it performs on a down day. Seems like it's support is around 30 and change. I went long 2000 shares when support seemed to be around 32 and sold at 34 and change, and waited until it dipped below 31 to scale back in. My point is that unless GE never hits 34 again, I'll probably do well. It's sort of like turtle trading. Apple is more exciting, but can drop 20 points in a day. I've made a ton but bought it at 120 on a considerable drop. What's my point ? Get in at a good price but dont sell too soon. Short term swings are nothing to be ashamed of, but patience has it's rewards
I've traded one stock 6 times over the past 2 months for a net gain of $25,000, so you can definitely get a rhythm going, but set your stops diligently and stick to your plan. And if you're holding overnight, nothing is safe against a gap down.
Here you go (names and #'s been removed to protect the innocent) - CDS - 4 accounts - all trades entered and closed out between 4/1 and 5/19. You can pick up some shares at a great price today. They're presenting at two investor's conferences in a couple weeks. Last month when they presented, their shares went above $9.30 again. They're all over the map lately, but have been one of Navallier's A-rated top growth companies for many months now - incredible record earnings and growth, and guidance raised twice in this year already.
I cancelled my GE limit order this morning I want to see if it goes over 31.10 ? I noticed on the level II quotes ask for crazy prices like HDSN 199,999.99 100 What is that all about? Is it possible if a buyer fatfingers an order that that guy will sell at that price? I see even bids for pennies as well. The TMBR guy has all kinds of wacky bids and ask.
Those are just market makers who have no interest in buying or selling at this time. If they make a market in the stock they may show bids incredibly far away from the inside bid/ask.