Good question. For MCTR, my target was 1.05. Which was surpassed. So I met my target pretty much on that one. Form MEDC, my target was $8.00 in 5 days or so. I didn't let it run to that point, but I rarely do. I lose so often on my trades, that I didn't want to lose the $0.40 gain. Thought I could buy it back after the pullback (which, needless to say, didn't happen). - Deb Trader
That being the case, I think you made two excellent trades-- pat yourself on the back. Your stops worked beautifully, and you made money. Your trades show that you have trading discipline, which is the one thing that so many would-be traders fell to have. It's virtually impossible to get the top print on any trade, and if you meet or beat your target, then your not leaving anything on the table, so be thankful for what the market gave you. One other thing, you might want to rethink playing those $1 stocks; it's just too easy to get bit. Good trading,
First of all this is not as sad as the huge loses people who do not set stop tell. I don't trade stocks now, but you should realize that when a stock breaks out morre often than not it retraces to the area of the breakout, so my guess is your stops were to tight. If you can get a copy look at Stan Weinstien's "Professional Tape Reader" for some good ideas on stop positioning as well as enties and exits. If I find my copy I get back to you with the info.
whenever i enter a trade, if it goes against me, i'm out of the trade quickly... no second guessing. if it goes in my favor, i scale out of maybe half the trade for a quick profit, and let the other half run with a fairly loose stop. this allows me to lock in a profit on the trade, and helps psychologically.
Thanks for this very concrete, no-nonsense advice. Sounds like a straightforward approach that is easy to follow and gives the best odds.
Hi Deb, Sorry... I'm joining this thread late, but your stops seem pretty tight to me, especially the one where you set a stop at 1.08 for a stock trading at 1.10. Did I miss something? Thanks, Rich
I use this exact method too for the same reasons. Capital preservation is the key. Sorry I did not mention it Deb.