Just bought 150 amd @ $24.55. Currently @ $24.50, i bought the shares near the opening of todays market-didn't do limit-live and learn. The openings for amateurs the close for the pros, i'm begining to understand that. Im confident in amd the way its been trading-any thoughts?
A few things: This is stock gapped up +.45 cents...then broke the low of the first bar within 15 minutes... and eventually went on to fill the gap. Try not to get in on stocks that gap up at the open...especially if they have been up the last several days like this one has. Its a suckers play. If you are going to play gaps, there are several rules that you need to adhere to. Way to many for me to go into here but remember this....if you do jump on a gap play at the open, the gap should be a shock to whom ever went in that last day or last few days...it should be a trap to the bears or bulls that are in it and make them run for the exits...fueling the play even faster in your direction. (in your case since you only go long...you should be looking to trap bears... not being the last one on the band wagon. Todays candle could be argued that its at minor resistance from Oct 5-7 , very minor but resistance never the less, and with 4 straight up days.....todays candle is what they call a "hanging man" Also, is this play based of the daily chart? If it is, than where is your stop? is it at the the low of yesterdays bar??? If so then this R/R ratio is unacceptable. Even if this stock rallies up to oct 1st high of $26.. its still only a 1:1 ratio... you need a tremendous batting avg. to make money trading like this....very hard for a beginner. I don't mean to preach just trying to show you some things.....BUT, i will preach about this: If this play is based on the daily charts, and your stop is at the prior bars low....than with the amount of shares you bought, you are risking around $225 on this play....way too much for a $5,000 account! Ten losses in a row and will be down to $2,250! Remember...you need to stay in long enough to learn this game. Loosing 50% of your account in say a month or two, means you need to to have a return of 100% just to get back to even. Not too many trades can make 100% of their money in 2 or 3 months. Hope this gives you things to thing about. Good luck with this play.
Sold amd for $ 26.05 (profit)(bought @ 24.60) and atyt for$ 15.83 (Loss) (bought @ 15.90) total profit less commissions: approx. $ 130. I have about $ 45.00 for full recovery on my account. Although i've been having winning trades I still have not made a profit overall. Pulling the trigger and putting my emotions in check have provided confidence when I buy and sell now. I had recently read new market wizards and it provided alot of sound trading practices that i will implement.
Well-i learned a valuable lesson about trailing stop this week-use them! I cannot stress this enough, my account is down again about $ 300.00. I finally finished my renovation! Now were in the decorating phase-so i just agree on eveything she likes-yes im a married man.