s-a said:
Looks good ardhill. I'm dubious of these cheap stocks. No idea how effective the lines are on instruments like these.
Yes, I know what you mean, when I day trade I like stocks that have a minimum volume of 2 million and normally don't trade anything under $20, and preferably nearer the $100.
I have a look at the pattern of the cheap stock and the market, if it look in keeping with others and the general trend, then I will take a chance on them. But I do have a very specific reason for choosing them on this strategy...
Trading daily charts is a bit out of my norm, so I need to be cautious, also I obviously haven't traded this 'system' for long, so I am still learning how it works. So, If I choose a cheap stock like Hecla Mining, I can put a legitimate initial stop in place that is only about 30c away, if I have read the market wrong, I loose 30c per share max. If I use this system on Apple for example, then my stop could easily be $7 away. I think I would rather risk 30c than $7 whilst I am learning this system. I am not very good at paper trading, I need to put money on the line to see how I will 'really' manage the trade. These stocks may be cheap, but I will trade them like I have money on the line (I do), but they won't hurt too much if I keep getting it wrong.
s-a said:
Weekly chart looks like good previous support at $5. Interesting to see how it holds in this concurrent market.
Ahh, yes this is true and there is something else I didn't mention.
I noticed that S/R area myself and wondered about it. I have actually taken a multi part position on this stock, i.e. I am willing to close it in 3 parts. Because of that $5 area, I took profits on one part today, just above the support @ $5.03, so I now have 2 parts left in the trade. I may take some more profit before the end of the day - we will see. I have also moved my stop to B/E because of the possible bounce up off $5.
