Ok first you gotta know that I just found this stock the night before I made the purchase, so there was no way to make the perfect entry on the initial breakout. Also, when you look at the minute chart and my point of entry, just imagine that you can see to the left of the purchase point when the trigger is sent.
If you open the chart to the left you will see that SOL finally broke out above the highs of April 26th and it did it with volume. This would have been the perfect entry the week of 8/30/10 around $9.83. Since I just found the stock, that was not an option. You can see since this point, there is no pull back for entry. But what we do have is rising trend, higher volume, RSI above 50, and we are above 30 week ma. Notice the Stop loss?
Take a look at the daily on the right and notice all the perfect pivot lows and the entries you could have made the next day. I would have liked to have known about this earlier. Look at the volume, the trend, RSI above 50, and there is that Stop loss again. Never buy without one and some people believe you should pick your stop loss point before you actually buy the stock. Last thing to notice is that all time high bubble. Weeeee!
Ok as you look at the minute chart to the left, keep in mind that you can only see all to the left of the buy points when you make your purchase. My first order actually went in about 9:52 am @ 14.77. Didn’t fill and she started rolling. Moved it up to 14.92 @ 9:59 and that didn’t fill. Now looking at the Weekly and Daily charts, you had to know I thought this bad boy was on the move. I moved it up again 15.16 @ 10:02 and didn’t fill. Now I’m looking at the stock busting through the open range of the morning and accelerating volume, so I moved it one more time to 15.24 @ 10:04 and got filled. At 10:05 she hit the high of the day, but I didn’t think that was it based on what I was seeing. I placed a second and last order right on the top line of the open range for 15.06. That was eventually filled at 10:24. From this point and for the rest of the day, the price floated down to the bottom of the open range closed at 14.55. So as of right now I’m sitting on a 120 loss wondering did I read this wrong or was it just bad timing. The volume was good all day, but the one thing that worked against me was that the S&P 500 was indicating a down trend all day from about 11:00, so the market breath took my new stock with it. My current stop loss is set right at the bottom of the current weekly low of $13.01. The last pivot low is 11.50 and the 30 ma is 7.68 and both of these are outside my 15% maximum stop loss, so I picked the weekly to start.
What will happen in the future? Wouldn’t that be nice to know, but I have protected myself against a massive loss in case I’m wrong. If I could pick every single stock as a winner, then I would be a fulltime millionaire now wouldn’t I? One day does not make a stock, so I gave it room, and now we will see what happens.
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