posted
I believe this was my mistake in buying this stock, I missed it and learned from it but would like to know if I am correct in why. The stock was AMAR on the 27th of Nov I found it. Everything looked good the rsi,macd,ema's I got a buy filled the 28th based on what I thought was good dd. It hasn't done a thing since and I am down 19%. Am I correct and it's the gap on the 27th that held this back? I'm close to dumping it since it surpassed 15% loss which is as high as I was willing to go for any losses since they are so low priced. But I wanted to see your opinion before I got rid of it. Thanks for any help on this.
Posts: 492 | From: new york | Registered: Jul 2005
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posted
You have a pretty volatile pick there Greco. Must have a low float.
Only looking at the chart without any knowledge of news, structure, or company, I myself would give it a few days more and see where she goes.
Friday she held even on comparitively low volume but still ticked up the RSI and the ADX.
I don't know that you can count on getting back to your buy point soon but there may be some strength coming next week.
All this is IMO. If you are nervous the best course of action is to take the loss and move on.
BF
-------------------- No longer eligible for government service due to lack of tax issues. Posts: 5178 | From: Up North | Registered: Dec 2005
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posted
Bigfoot thank you for the reply. I didn't pay attention to the float or the news just the three I mentioned. Nervous of losing doesn't seem to be my problem, lately really it's frustration. I look at all these stocks and seems even if all the indicators are pointing toward a uptrend not much happens and on the flip side of that I can find a thousand stocks that none of the technical info seems positive and there is a huge gain. So it seems that just positive news and volume are the big movers. What really gets me is that you can see the volume increase on a doji on a downtrend and the people buying those aren't waiting for the next days indicator, everything else isn't pointing in the right direction yet they got in at the right time which seems like total speculation.I want to be that good or lucky whatever it is.
Posts: 492 | From: new york | Registered: Jul 2005
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posted
If you trade based on candlesticks.. then that is why you wait for the next candle (on high volume or average volume but not low volume) to get confirmation of a reversal and pending uptrend such as that doji on a downtrend you mentioned... that is just one example... ever consider trading big board stocks instead of penny's? ... the indicators are more consistent with big board stocks... the problem with people trading penny stocks is that they are looking for a get rich quick scheme... and what they don't realize is that the majority of penny stocks are just that: Schemes
-------------------- Let the world change you... And you can change the world.
Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
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posted
Mac, Yes I have thought quite a bit about staying away from pennies. I have been looking at cheap ones on amex and nasdaq true nasdaqs. I did go back to the book you recommended and tried to find info on float in there but he doesn't touch on that. Bigfoot mentioned float so I figured I should look into that. Tell me if you can in a percentage of stocks that you have played that exhibited a good candle pattern, rsi, macd, ema that actually panned out to trending up a day or so after you got in. Do you stick to that as bible or do you sometimes get into a volume mover that was in a downtrend regardless of the other indicators? I would love to know that. As for get rich quick...... No although I do know a guy trying to do that. My goal is to make $100.00 a day while I'm doing my real job. I think that is a tangible goal. If I said 500 a day I wouldn't be realistic. So I think I am being conservative and not expecting to much while I try learning. But it does get frustrating. It's the people buying on the doji alone not waiting for the confirmation the next day that frustrates me. Those buyers either know something or are just gambling but the big percentage of time they seem right. Thats what I wish I could know.
Posts: 492 | From: new york | Registered: Jul 2005
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