GREY:MAAFF - Post by User
Comment by
StoxRokon Oct 15, 2008 8:23pm
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Post# 15527807
RE: shorting destroys value/capital
RE: shorting destroys value/capital When is it a buy signal?
It was a buy signal when I bought at $3.08! However, I do not sell if I don't get two times reward for the risk I am taking. It came close (risk $0.33 which means I needed $0.66 to reach my goal, so it needed to hit $3.74) but never quite made it. So, the discipline is to wait for my 1/2 reward to risk. You may say it was close enough - and it probably was, in hindsight - but that is how I trade. I have an exit point on the downside and start looking for an exit point on the upside as soon as it hits my 1 to 2. If it never hits that, I hang on until my downside exit point is reached. This keeps me from selling winners too soon and exiting losers too late ....... and it has worked well for me. I will change that strategy from time-to-time in a market like this admittedly, but when I was trading MAA there wasn't quite this much turmoil. With the instability going on I am trading somewhat more cautiously and pretty much sticking with day trades, which I enjoy more anyway.
I think MAA will be fine, by the way, and I would never have guessed it would have made it down this far. It goes to show that fear and greed make people act irrationally.
SR