Post by
grampatech1 on May 14, 2019 4:31pm
THERE ARE TWO OLD PROVEN PRINCIPLES IN TRADING STOCKS
First: Gaps are nearly always filled, regardless of fundamentals.The up gap here was between 10 and 10.5 cents in the news release about a month ago that sent the stock to 15.5 cents on heavy volume.
Second: buy when most people are selling (oversold)and sell when most people are buying(overbot). The discipline you need to follow these rules is extrordinary but critical to consistent success.Today, I regret not selling half my position when this hit 15 cents a month ago because I could have bot it all back today slightly below my averge price with a $5000 profit in the bag. Nonetheless I will continue hold out now for my technical target of 25 t0 30 cents before selling .Strangely I placed an order today for 10000 at 10.5 after it was bid 10 cents asked 11 about 10 minutes before the close. My bid held alone at 10.5 cents for 5 minutes until the bids increased to about 30000 shares. A lot of about 20000 shares then sold for my bid price which suggested a cross within one broker as i unfortunately did not get filled. I will try again tomorrow.Bids then rode to about 55000 shares just before the close. Nobody can be making money by selling at these prices....so there is no rationality to the selling
Comment by
Odelay on May 14, 2019 6:37pm
Great post. Thanks for adding this. Hopefully soon the irrational ask orders will be lifted.