Reliq Health Technologies Inc V.RHT.H

RE:Chart reading serves little purpose now, mulinek

[mulinek]

There are Technical Traders and fundamental stock pickers. And people employing both strategies. I believe you buy on fundamentals but you sell on technicals. All the time.
Now – if you buy junior plays like RHT and you bought at let’s say 0.20- 0.33 (like many of you, I guess) you didn’t buy on fundamentals. Company didn’t have any. To limit the risk I try to sell on technicals and buy back on technicals. I bought my share between .73 – 1.03 and sold around 2.11. I bought them back and sold them.  I’ll reestablish my position using profits only or bring my own capital to 20% or so in the position (depends on the price I’ll accept). And to do it I have to follow charts.
Now, think about the people who bought RHT around 2.20 – 2.45 and I’m sure they are still  around watching how price is slowly moving lower and waiting for the market to bail them out. They should not be buying after extended parabolic move but they did. Emotions took over and they couldn’t resist the feeling of loosing out on possible amazing life time opportunity. If they followed charts they wouldn’t be under the water. Being long term doesn’t mean you can not move in and out of your positions. Risk management is job number 1 in trading and investing.  Every time you buy shares of the company you should have exit strategy and the target, even if target can be moved up number of times due to obvious reasons.
Exit strategy  could be: price goes bellow EMA5 (for short term traders) or EMA9 or KAMA. Exit after loosing 8% (Business Daily strategy) of your money. When momentum TSI vanishes.  I’m going to hold on forever because I pick up the gem and I’m long term investor is not strategy.
We don’t know what future can bring to RHT but looking at charts we learn what market thinks about company. And sometimes nice companies can be a terrible stocks (investments if you prefer). If RHT is such a great super little winner I’ll stick to it for years owning happily basically free shares.  But will follow charts daily.

Happy Trading