nice trade...would like to know how far do u put your stops....what do u use to determine ur stop??? thanks for the help and keep up the good work
This stock is a perfect example of why you need to have staying power. Granted, a valid argument can be made both ways. You have to cut your losses at some vs. letting the stock come back to you. This stock is very unique in the sense that it has established a very consistent trading range. I wasn't turning cartwheels when I was down $1 but I feel confident in this stocks movement (aka- how the specialist whipsaws the quick triggered traders out). The specialists are making a killing on this stock right now. I saw a .40 spread for a second or two earlier this morning. The liquidity is a serious drawback, especially trading 3K shares. My strategy with this stock is to ultimately stay short and hold but in the meanwhile I will trade for the gaps each way and work the order as best I can. If you have been watching this stock all day, you don't needs charts or studies to tell when to open/close the position. Watch the day high and low and how quickly it gaps to or near those levels.
I have very loose mental stops on this one. I don't believe in risk/reward ratios. If you know the stock and it's trading range you shouldn't close it out just because the specialist is gapping it with no volume. That's what they prey on. On this stock, I can deal with being down $1 with the understanding that I'll probably make about .50 or so when I decide to close. Also, .50 is not my target for exit. I watch L2 and the trading channels at that particular time when I think I should exit.
good job...im am going to follow your thread closely...and will be asking questions if you dont mind....
seanote,anything particular that you look for when watching level 2 to get an idea where the stock is going next?