December 6, 2010

S stopped out $3.80

This was a rough ride and very unpleasant. First I got in too quickly based on my entry flowchart for stock reversals, without letting this reversal develop into a true breakout.

Then I didn't have a stop loss in (first rule of trading, limit your losses). The price recovered, and I should have got out even. But I didn't, I was confident it would turn around. But it didn't turn around, and now with my stop loss in, I was stopped out at my 5% stop loss at $3.80 on 12/3. The day after, it was back up 5% in a single day to over $4.

Now it's at $4.17. Should I get back in? I'm almost done with second guessing this volatile little bugger.  I'm going to let a clear trend develop, as I think the company has potential and should benefit from all this frantic buying of smartphones as Christmas presents.

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