Staying with a good trade is difficult sometimes, particularly when you have a bear day, then a bull day, then a bear day, and so on. The best thing to do is to let the trade ride unless our targets are met on an unexpected move against us compels us to avoid further losses.
Yesterday, my stop loss was triggered on DE, only to see the stock go back down where it was before the stop-loss was triggered. This is the chance you take when you trade and you shouldn't look back too much, as long as you are in a good profit level. The idea is to make money while avoiding too much risk. The contingency orders and the short side of the trade on PRC's and CRC's are meant to moderate losses and contain the violent moves in the stock price. BUT there is little protection against overnight moves in the direction opposite to our expectations.
Despite recent losses (we had reached 15.8K, and we are now 14.8K), we have a good cash position and I am comfortable with the positions I hold. Hopefully we will be back to growth in a short while. In the meantime, take a look at my contingency orders
3 comments:
Juan,
Please could you post the account summary too on the page, as you have done before, so we can see the positions as well. Thanks.
Placing the Fibonacci retracement application in Metastock, at $15 on the lowest low on the 16th June 2005, and the 23.6% retracement line on the double peaks of $33 on the 29th August and 1st September 2005, the rise to the 0% line projection is $39. That projection has now occurred. Will we get another double peak at that price? I think not, because the volume is not currently there. I could be wrong though.
So thinking ahead here. Would it be wise not only to place a contingency stop loss order as you are currently doing, but a day order on profit using the Platinum projection of profit for the trade you are on up to the next rising projection? Just some thoughts for the ‘mixing pot’!!!
Some more ramblings here. **Smiles**
Just playing around with the Fibonacci time zones in Metastock.
Placed on the 10th June 2005, when AMLN rose $1.5 on a triple normal day volume surge
These are the dates where the Fibonacci time lines occur, which are called Fibonacci Zones;
20th – 23rd June 2005 Slight retracement
28th - 30th June 2005 Slight surge up.
8th - 12th July 2005 Priced peaked the following two days at $23.47
29th July – 1st August 2005 A low of $18.50, price started to go up from this point
26th - 29th August 2005 The high of $30.94, was the peak for a recent run up in price.
14th - 17th October 2005 ??? I am only guessing a time for the next low of the run, perhaps.
Placing the Fibonacci retracement application in Metastock, at $15 on the lowest low on the 16th June 2005, and the 23.6% retracement line on the peaks of $39 on the 4th October 2005, the rise to the 0% line projection is $46.66.
In Frost and Prechters book the Elliott Wave Principle, they talk in Chapter 4 about 1st, 2nd and 5th wave extensions extensions, is this mentioned on the Elliotician Course?
**Correction**
In Frost and Prechters book the Elliott Wave Principle, they talk in Chapter 4 about 1st, 2nd and 5th wave extensions, is this mentioned on the Elliotician Course?
You probably mean 1st, 3rd and 5th wave extensions. These are the impulse waves within an impulse series. According to Neely, one of the this three waves always extends, but it is only one of the three (usually the third wave) that extends in a series. The Elliottician course may not mention this directly in the course, but the software does differentiate impulse series very well.
(look up Neely's book — I have discussed in a previous article: http://stockoftheday.blogspot.com/2005_05_22_stockoftheday_archive.html)
Fortitude, you should consider posting some of your charts, as it is difficult to follow yur numbers without a visual aid.
Post a Comment