SOL mistake reviewed

Well to say that SOL bothered me is an understatement. I had to know what I missed or if I was just risking to much.

First, what did I missed. I do not think I missed anything on this purchase. It was in an uptrend on the general market. The group, technology was in a uptrend and ranked 4th out of 12. The stock itself was above the 30 week ma and the RSI was above 50 and rising. I had rising volume also working in my favor. So what went wrong?

First mistake was not selecting a stop loss price before I decided to purchase. This might have clued me in that maybe it was to far above the 30 week ma and there were no pivot lows to select as stop loss  on the weekly chart.

So if I take my entry price of $15.17 and subtract it from the 30 week ma, $8.48, that is 44%. Too hot for me. If I take the first pivot low on the daily chart, which was $11.50, it is still 24%. My maximum stop loss is 15% and I hate using it. I’m much more comfortable at 7% or less with the initial purchase or entry.

The last thing that happened and I had no control over was the news story about the US Government looking at China for favoring there own Green Companies over all US companies no matter of pricing. That was the slam I could not control.

Conclusion, do not be so impatience with a hot stock and wait for some type of pull back or break out before making an entry. $480 lesson.