| Welcome Guest, please sign in to participate in a discussion. | Search | Active Topics | |
Registered User
Joined: 3/9/2006
Posts: 25
|
Hi diceman.please help me with UFPT.
|
|
Registered User
Joined: 1/28/2005
Posts: 6,049
|
mambo
The next level of interest will probably be about 5.5 (the 50 day mav).
If you are in this I would look for opportunities to get out. (any strength)
There is no way to consider a stock that falls 13% in one day "positive".
If you notice from 6-08-06 to 6-15-06 there was a similar sell off to the
50 day mav (simple mav).
It can go down to the 50 and still have its uptrend intact.
It all depends when you got in.
If you are at a loss I would decide how much you can lose-set your
stop there--and that's it--it will either hit it or not.
Thanks
|
|
Registered User
Joined: 3/9/2006
Posts: 25
|
Thank you for your help,am in deep S bought 7.23 now dont know what to do.
Thank you for your help
|
|
Registered User
Joined: 12/8/2004
Posts: 1,301
|
Mambo you now have 3 simultaneous threads on this stock.
You should always know when you buy the stock exactly what point you will exit should the trade turn sour.
|
|
Registered User
Joined: 3/25/2005
Posts: 67
|
QUOTE (HaveNoCents)
You should always know when you buy the stock exactly what point you will exit should the trade turn sour.
I'll second that, just for emphasis - otherwise you'll experience the distinct displeasure of a deer in a car's headlights. This is one of the few IRREFUTABLE TRUTH's OF TRADING.
JG
|
|
Registered User
Joined: 3/9/2006
Posts: 25
|
I am sorry if i used anybody time with stuped question,but i bolive better to lern
something here in the forum.Sorry again and thank you for your time.
|
|
Registered User
Joined: 12/8/2004
Posts: 1,301
|
Mambo you are not wasting anyone's time. If people felt like it was a waste of time then they just would not respond.
|
|
Registered User
Joined: 3/9/2006
Posts: 25
|
Thank you HaveNoCents .i am out of that stock,-1300.But least out.If i know where
to step out,i could be out at 7.99 just less knoledge.
|
|
Registered User
Joined: 5/17/2005
Posts: 221
|
mambo ....in the future try to trade stocks with liquidity meaning there is enough volume in the stocks. UFPT has an average of 80,000 at best. I do not trade anything with an average daily volume of less than 500,000. I always trade to the long side ..even in this market (and still profit) , although i am mostly day trading right now and catching dead cat bounces after the first hour of trading .
That said with the hammer , which has a long tail that bounced off the 50 day sma I think this stock should rebound. The pattern is there and intraday you could have traded it from 5.49 to 5.7 as it bounced off it's 50 day sma.
However it is not tradeable.the reason for this is that all the money I need to manipulate this stock is $500,000. Most market makers could easily make this stock go up by buying it , making the average investor like you and me thinking that is is being accumulated and rushing in to buy it. This causes momentum in the stock , causing other buyers to keep buying it. Meanwhile I have stopped buying it a fews days ago as retail investors keep on bidding the stock up to it's high , as soon as i have made my target profit I start to sell , causing a decline in the price as I am the dominant market maker and trade the largest volume.
I think that the way you traded the stock is to buy the break out of May high at 6.77, which occurred on June 10th on three times average volume .. so not a bad play at all. however on breakouts stops should always be set just below the breakout resistance line (that becomes support once the stock has broken out). This would minimise your loss should it be a false breakout. Once your stop is set ...DO NOT MOVE IT !!
I have had great success with this trading technique and trade it on all time frames .
Hope this helps a little.
a good volume stock to trade is PPHM .. nice low price , great volatility , formed a hammer candle on friday off 1.3 (longer term support and psychological whole number). Entry would be $1.3 .that is my target entry as I think that it will test this level again (based on the 1 hour chart). Stop below 20 day sma at 1.24 ...target = 1.5 , risk reward = 1:3.5. Peter Worden is still bullish on this one unless it breaks the 200day sma. The tis is a low risk play right now as there is satcks of upside and not much down ..it might even trade back up to $2
|
|
Registered User
Joined: 3/9/2006
Posts: 25
|
Thank you malcolmb14 your input.I am not pro,i started only in march,so i realy
dont know how to adjast te support and resistance level.I try to read ewery help what i can get so like yours,i try to make better picture.But i bolive this game
need more time.Thank you again.
|
|
Registered User
Joined: 1/28/2005
Posts: 6,049
|
mambo
If you do not know how to determine support and resistance. Then you should
use a fixed stop. Let say 8%(since it was the topic of recent Worden discussions)
You could also try some position size money management.
Lets say you want to buy a stock thats $30 a share.
Lets say your account is $10,000.
You will only risk 2% of your account on any trade.
$10,000*2%= $200
Since you are using an 8% stop on a $30 stock.
$30*.92=27.6
30-27.6=2.4 dollars of risk
200/2.4=approx. 83 shares.
So on this trade you will buy 83 shares at approximately 30 dollars a
share and set your stop at 27.6.
This will give you 2% account risk.
This will at least give you a controlled way of doing things.
Thanks
|
|
Registered User
Joined: 3/9/2006
Posts: 25
|
Hi diceman.Thenk you for your help,a never used that mony management
maybe that sould be the first step.From march untill now everything
was ok,that was may first big loss.Never lost 1300 on one stock.
That theory what you do is working with chep stock to? I always buy
2-5$ stock.UFPT was the first 7$ stock. I will try your mony managemant.
Thank you again for your help.John
|
|
Registered User
Joined: 1/28/2005
Posts: 6,049
|
mambo
The basic idea is because you are controlling risk you can buy a cheap or
expensive stock. Your risk will always be the same. Lets say in the example
you want to use a 10% stop instead of 8%. The larger "risk" will make you buy less shares.
Lets say you choose a 10% stop. You see a $80 stock you like and a
$7 stock you like. You will have $8 dollars risk on the $80 stock and
70 cents risk on the $7 stock.
If $200 is your risk limit you will buy approx. 285 shares of the $7 stock
or 25 shares of the $80 stock. (200/.7=285 200/8=25)
Which ever stock you buy. The cheap or the expensive. Your risk is the
same.
Thanks
|
|
Registered User
Joined: 3/9/2006
Posts: 25
|
Thank you i try to follow your advice.i lowe your advice and explonation.
|
|
|
Guest-1 |