good find tobydad.

I like the BOP. OBV cossed 21MA on few time frame, TSV looks like it's crossing zero. Nice 4 week basing. good candid to watch.
What do you think of CBRX , I made few hundred when you first brought it up back in March. I missed it @ 2.16 based on your profile, I think this is going to test its resistance at 2.80, Thanks
Moe

qtfo501

I, like you, am limited in the size of my portfolio and am a novice trader. I have been paper trading for the last eighteen months or so with an assumed portfolio of $5,000.

I have been lurking in the background, reading the posts, and learning how to manage support and resistance and entry and exit points. I have learned to listen especially to apsll, Diceman, Tobydad, and DavidJohnHall. They do not offer advice as to how to trade but are generous with their experience and what has worked for them and with posts of results of some of their scans.

From them I have learned to evaluate support and resistance levels. There may be times when the price has fluctuated within a relatively narrow range. If this area is above he current price then it is resistance and the price may stall here for a time or even turn and go lower. If the area is lower than the current price then it is support and if the price declines to this level then it may stall there for a time and then rise to higher levels. In addition to the areas of price congestion, a moving average may serve as either support or resistance. The 20, 50, and 200 moving averages are popularly chosen. Also certain trend lines can be drawn which can serve this function.

In addition I have learned the importance of managing a trade by limiting the amount of money risked on any given trade, limiting the amount of money I am willing to lose if the trade goes against me, and choosing stocks with a potential for increasing in price.

There techniques for choosing stocks based on the behavior indicators available through TC2007 such as MACD, TSV, MS and others. The people here in this forum are generous in their willingness to share their experience in using these indicators.

I have taken some of the scans which they have posted and used them to select possible candidates for trades, sometimes modifying them to suit my style of trading. By observing their styles I have learned to formulate my own scans.

By picking stocks from their posts, from their scans, and from my own scans I have, since the first of January, entered into 141 trades. I made money on 70 of them and lost money on the other 71. At the end of the year I am showing a net profit of $3,788.17, a phenomenal 75% gain. I doubt that I will be able to duplicate this performance when I begin trading with real money, but I am encouraged to try.

How did I manage to achieve this kind of performance?

Before I enter a trade I look at support and resistance and calculate the Reward/Risk ratio and the potential profit. The Reward/Risk must be greater than 2.0 and the potential profit must be greater than 20%.

The Reward is the difference between the current price and the nearest resistance above the current price. The Risk is the difference between the current price and the nearest support below the current price. If this calculated risk is greater than 10%, then a stop loss is set such that the loss will be no more than 10%. In no case will a trade be entered if the Reward/Risk is less than 2.0.

As soon as I place the order, I enter a stop loss order. This stop may be raised as the price rises above a new support level or to lock in a profit. It may never be lowered.

It is possible that after you get stopped out the price may take off like a homesick angel. If this happens then you may wish to buy into it again or you may choose to wave bye-bye and examine why you set the stop at that particular level.

Every time I look at a chart of a stock I own I decide, either consciously or unconsciously, to either sell or hold it for a while longer. If the decision is to hold a loser in the hope that the price will increase until it becomes a winner then it will probably continue to go down to an even greater loss. As Diceman has reiterated, cut your losses but let your profits run. Let the price tell you when to sell. I believe that a decision to sell is never wrong. It may not be the best possible, but if it is a decision to sell a loser then you can’t lose any more. If it is a decision to sell winner then “you never go broke taking a profit”. The price may go higher but you have more money in your pocket than you had when you started.

In summary, pay close attention to the experienced traders here and develop your own style of trading. One that you are comfortable with and that fits your personality and degree of risk tolerance.