Pandora (P), has showed wild volatility since IPO. I was stopped out of my technically perfect entry on 12/20 last month at $10.14, and then was too scared of the volatility, and missed the wild 40% run.
Yep, a tragedy. That's the psychology of trading.
Now Pandora is on another run, and I'm worried again that it will crash quickly. The problem with a stock like this is that it is almost too volatile to even use stops. Most 'normal' stop loss strategies will get triggered when a stop is jumping up an down by 3-8 % every few days.
RSI is still at 70, so this rally could still go higher, but the risk of a sharp dropoff is considerable. My broker won't let me sell short this stock, so it's long positions or nothing. I don't think the market really has a clue how to value a company like Pandora.
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