RE: UK Stocks - Watchlist and Discussion (Premium)
(2014-08-14, 10:08 PM)pcabc Wrote: I would imagine it is a little late to purchase RNWH.L now, being around 8% above the breakout level.
Yep, it is a day late on the breakout, but it could always pullback tomorrow, or you can position size to manage your risk with a smaller position, or choose a tighter stop loss like below this weeks low or some other stop loss method.
Sometimes what can look too high, is still only very early in the Stage 2 advance. See BITA now, which I highlighted back in October last year at 23.54 after it was already up around 400% from it's Stage 2A breakout level. It's 1100%+ from it's Stage 2A breakout currently, and shows what can happen when you get continuous A+ volume characteristics come into a stock.
Clearly RNWH.L hasn't had those volume characteristics, but the last few days were promising on the initial volume during the breakout, although it still needs a big volume day tomorrow to make the 2x weekly average requirement on a breakout week.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
RE: UK Stocks - Watchlist and Discussion (Premium)
(2014-08-14, 10:45 PM)isatrader Wrote: Yep, it is a day late on the breakout, but it could always pullback tomorrow, or you can position size to manage your risk with a smaller position, or choose a tighter stop loss like below this weeks low or some other stop loss method.
I think I'll happily sit this one out. I have too many stocks in my portfolio that have been bought a little too late and are in pullbacks and have been for a while. They have not dropped far enough to be considered failures and they look like they are starting to pull up or at least are level. Being a fair proportion in cash right now I can't see any harm in just watching them and only taking action if they drop, they are not tying up cash.
I've sold a number of funds in the last week and also have recently bought BRK-B, SMF.TO and PCLN. Given the stage 3 in the markets and the fact that I've had no 'balls fire' recently and some losses then I need to calm down and wait a little.
I think I have two things to brush up on:
1. Selling if volume does not confirm or breakout fails - perhaps I hold to readily.
2. Pacing myself.
I note the difference between Weinsten and Minervii, the former has volume rules whereas the latter recommend getting out if it simply does not look like it is doing what you want.
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isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
