Monday, June 22, 2009

MUST (dis)OBEY STOPS!!?! ~ the Do-Nothing Strategy.

When purchasing, always have a clear price target of where to sell if the stock moves against you.
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And YOU MUST OBEY YOUR RULES!
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BOTD stop-loss: "sell ERX when/if XOM breaks $70 to the downside."
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The AM: XOM opened at 70.10, then broke $70 within the first 12mins of trading. did BOTD OBEY his stop? .... hmmm, let's wait out the first half hour this could be a fake-out/shake-out ... 30 minutes later, hey look at that bounce in our ERX, this may work out after all.
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Mid-Day: SPY coming off lows ... still holding, time for the BULL run?!
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End of Day: down $3000+
Exxon (XOM) 68.84-2.21 (-3.11%) ... closed on lows.
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ERX 27.10 -4.64 (-14.62%)
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LESSON: MUST OBEY STOPS!!!
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EBAY 16.45 -0.83 (-4.80%)
GS 137.01 -6.12 (-4.28%)
AAPL 137.37 -2.11 (-1.51%)
SQM 34.88 -1.80 (-4.91%)
HK 20.56 -1.99 (-8.82%)
MELI 21.85 -2.03 (-8.50%)
DRYS 5.53 -0.66 (-10.66%)
SKS 3.86 -0.34 (-8.10%)

p.s. HOPE is NOT an investment strategy.

3 comments:

FINZ.tv said...

yeah, but you gotta have faith in floyd!!

-alamo-

BUY ON THE DIP said...

always and forever.
(the randy travis version)

Ticker Street said...

A small thing I noticed about the 3X ETFs. Don't buy when they are down big, I know we look at the worst losers for the day. Let them consolidate, they take a pause and that is when they rise big. A plunge in price will only accelerate the volatility of these beasts which will result in more selling.

Criticism welcome on this comment. :)