Decisions, decisions (SIRI)

[lak]

I bought in again too........... thinking it was a bad move now.

[Websman]

I bought in again too........... thinking it was a bad move now.

yup...bad move. I let you know what I do.

[lak]

i had a stop set and got out fyi

[Websman]

i had a stop set and got out fyi

me too...
I'm hitting burnout. I'm considering closing my trading out until Jan...lol

Update...I got back in at a lower price. I knew better than to get in during the first hour of trading. Yet another valuable lesson learned. I am now holding SIRI.

[spikefader]

..a stop was useless on this one as by the time the market opened it had dropped like $1.25 already.

One clarification to be helpful to those who don't realize this, but there are 2 different kinds of stops - limit stops and market stops.

Lak is describing that a 'limit' order would have been useless in the situation. That's true, since had you used one, your position would have remained open while price continued falling.

A market stop order on the other hand would have worked perfectly, albeit making the exit much lower than the previous day, but that's beside the point. The point is the usefulness of stops. And strictly speaking neither kind of stop orderis useless, since they do exactly what they are designed to do - 100 percent of the time therefore they are perfect. Probably one of the few things that can be perfect in trading!

So the bottom line is if this: if you're using a stop, make sure you understand the consequences of the type of stop you're using, and pick the right type of stop for your trade. I use both kinds, and which one I pick depends on the type of stock I'm trading, it's volume, it's volatility etc. Thinly traded stocks can really bite you if you use a market order but the great thing about a market order is that you'll be out of the position and if it's a falling knife you'll preserve the capital that's left in the position.

On many occasions I'll often take an estimated risk that price will bounce on thinly traded stocks, so I'll choose a limit order, but I realize if I do that, there's no guarantee I'll get out of the position at that price. So this is why I watch my trades very closely, using alarms and alerts. And if price has fallen below my limit I reconsider if I should lower the order to chase the bid, or if I should hold it.

This is where it gets tricky, and emotion can enter the situation, which I really don't want. Emotion has caused me to hold and hope, and eventually give up hope I'm sure it's happened to most active traders - being proven wrong in a postion, refusing to admit the mistake and "taking their medicine", and holding until the stock is worthless or in low single digits, with no certainty that it will recover.

A classic example is BEL, one of Mr. Market's picks. There is a huge amount of hope at this board that it will recover. I hope it does and you all profit from holding it. But that hope is little consolation to a trader who wasn't diversified, didn't use a stop, and has retired from trading since their capital is gone.

[spikefader]

me too...
I'm hitting burnout. I'm considering closing my trading out until Jan...lol

Update...I got back in at a lower price. I knew better than to get in during the first hour of trading. Yet another valuable lesson learned. I am now holding SIRI.

Oh boy. You're on an emotional rollercoaster my friend! I don't know why ya'll bought way above the intraday R2 this morning. You guys gotta learn some patience. Use a limit order to enter at intraday support - ANY support.....just NOT resistance! LOL Do that, and you'll smile more about your entries!!!

EDIT: see chart. The green support line at 7.81 (was resistance, but when broken it becomes support!!) would have you smiling!

[Websman]

Oh boy. You're on an emotional rollercoaster my friend! I don't know why ya'll bought way above the intraday R2 this morning. You guys gotta learn some patience. Use a limit order to enter at intraday support - ANY support.....just NOT resistance! LOL Do that, and you'll smile more about your entries!!!

EDIT: see chart. The green support line at 7.81 (was resistance, but when broken it becomes support!!) would have you smiling!

When will I ever learn...

[Runner]

I surely not a candlestick expert, but looks like SIRI closed in what is known as a evening star.

http://www.litwick.com/indicators/1211.html

[spikefader]

Yes, it's a high reliability reversal pattern.
So back to what I said earlier in the thread:

....look for the 'c' entry!!! and not the 'b' entry, where it is now....

Webs, if it were me, I'd not enter long today, but look to buy the next dip down to about 6.00! Anyway, the caution is duly administered!

[Websman]

How to Identify it

First day is a long white day
Second day is a doji that gaps in the direction of the previous trend
The third day is a black day
What it Means

In an uptrend, the market builds strength on a long white day and gaps open on the second day. However, the second day trades within a small range and closes at or near its open. This scenario generally shows an erosion of confidence in the current trend. Confirmation of the trend reversal is the black third day. The Evening Doji Star indicator is the fully realized bearish Doji Star pattern.
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Time will tell...I have a lot of room to play with.

[Runner]

Since I have a day job I carry a PDA that has a gprs card. This allows me to access my trading account. I set my stops after the first 30 minutes of the market being opened. I choose to wait out the first 30 minutes because this is normally the most volatile time of the day. I use stops and so some might say I’m a wimp, but too me this just makes sense. I might even think of it as insurance, but to each his/her own. Yes I’ve been stopped out and then watched the stock rocket up, but things happen. I learned a valuable lesson on NTY about what could happen. We all have herd about hoping when we should be fearing.

[lak]

One clarification to be helpful to those who don't realize this, but there are 2 different kinds of stops - limit stops and market stops.

Lak is describing that a 'limit' order would have been useless in the situation. That's true, since had you used one, your position would have remained open while price continued falling.

I am aware of this but I am not sure which is which in my Trading app. When it comes to selling I have 3 options to place with: Market/Limit/Stop. So i am not sure how to make it a Market stop vs. a Limit Stop.

If I did I would definitely use the market stop, but wasn't and am not sure how to enter that.......... call me a freshman trader if you will.

[lak]

Since I have a day job I carry a PDA that has a gprs card. This allows me to access my trading account. I set my stops after the first 30 minutes of the market being opened. I choose to wait out the first 30 minutes because this is normally the most volatile time of the day. I use stops and so some might say I’m a wimp, but too me this just makes sense. I might even think of it as insurance, but to each his/her own. Yes I’ve been stopped out and then watched the stock rocket up, but things happen. I learned a valuable lesson on NTY about what could happen. We all have herd about hoping when we should be fearing.

I usually never trade in the first half hour either.......... hate it. Sometimes I jump in because I am SO tempted and it usually bites me in the backside.
Also use a PDA to trade........ kinda neat really, and my sidekick I use to check my port all day long......... kinda geeky too......

I don't think of stops as wimpy......... often times they are the smartest thing!

[lak]

Yes, it's a high reliability reversal pattern.
So back to what I said earlier in the thread:

Webs, if it were me, I'd not enter long today, but look to buy the next dip down to about 6.00! Anyway, the caution is duly administered!

$6 price to enter....... wow......... would love to get in at a price like that..... long as it heads back to $9 and not down to $5!

[lak]

When will I ever learn...

Ditto for LAK!