counter_violent
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Ok well I have the chart for today. Taken a bit of a hit, but then so has everything. So I guess what you need to do is compare this individual stock to both the sector and the nasdaq index and if your findings show nothing untoward then I guess you will just have to sit it out.
Are you trading this position or did you purchase this stock outright?
http://finance.yahoo.com/echarts?s=...on;ohlcvalues=0;logscale=off;source=undefined
I purchased the stock myself.. I am new to day trading, but I have been watching this stock carefully for a couple of weeks... I thought for sure it would go up, and it fell to $41 in two minutes. I have 500 shares. I don't want to sell at a huge loss, but I am worried it will drop further. Evidently, a website panned the stock today. I knew it was too good to be true. It had been swinging upwards of $4 every day. Of course, the first day I get in, it crashes...
counter_violent
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By sector...hmmmm
Stocks - Sectors | Sectors Heat Map
hmmmm
Stocks - Sectors | Top 100 Stocks
hmmm
Stocks - Sectors | Industry Groups
Stocks - Sectors | Sectors Heat Map
hmmmm
Stocks - Sectors | Top 100 Stocks
hmmm
Stocks - Sectors | Industry Groups
counter_violent
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I would'nt be so hasty...the world and his dog seems to be waiting on European Greek News again (thurs) and the markets could bounce up just as easily as they bounced down !
Jack o'Clubs
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This is a bit after the event so I hope you've traded out of it ok today. You've obviously lost money, but if you seriously use the experience as an education then maybe it's not a complete disaster and will save bigger errors down the road.
Here are the three areas you need to ask yourself questions about.
First, risk management. Looking at the stock 10pc+ daily moves recently were not uncommon. The stock is a micro cap and highly volatile. In that context, with the position you put on you had $2.5k at risk (in the event of course it was worse than that, but let's stick with 10pc as a reasonable assumption). Since you don't really want to be risking more than 1-2pc of capital in a single trade, is it fair to assume you have a trading account of $125k+? If not, you were taking on far too much risk in a single trade.
Second, what signals were you using to say that this was a buy? When I look at the chart I see a gravity defying overbought stock that was prone for a euphoria-exhaustion correction... What did you see that told you different?
And finally, WHY DOES NO ONE ON T2W EVER LOOK AT FUNDAMENTALS??!!! Not a single broker, not even some two-bit third-tier US local, covers the stock so there are no estimates. For the last three years revenues have been declining, EBITDA has turned negative and the company is loss making and cash flow negative. If nothing changes, this company is going bust. At the very least, the financials should have urged a bit of caution compared to the price action.
Work on those three issues and hopefully you can pull something constructive from the wreckage. Good luck.
Here are the three areas you need to ask yourself questions about.
First, risk management. Looking at the stock 10pc+ daily moves recently were not uncommon. The stock is a micro cap and highly volatile. In that context, with the position you put on you had $2.5k at risk (in the event of course it was worse than that, but let's stick with 10pc as a reasonable assumption). Since you don't really want to be risking more than 1-2pc of capital in a single trade, is it fair to assume you have a trading account of $125k+? If not, you were taking on far too much risk in a single trade.
Second, what signals were you using to say that this was a buy? When I look at the chart I see a gravity defying overbought stock that was prone for a euphoria-exhaustion correction... What did you see that told you different?
And finally, WHY DOES NO ONE ON T2W EVER LOOK AT FUNDAMENTALS??!!! Not a single broker, not even some two-bit third-tier US local, covers the stock so there are no estimates. For the last three years revenues have been declining, EBITDA has turned negative and the company is loss making and cash flow negative. If nothing changes, this company is going bust. At the very least, the financials should have urged a bit of caution compared to the price action.
Work on those three issues and hopefully you can pull something constructive from the wreckage. Good luck.
Jack o'Clubs
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This might be of interest:
http://seekingalpha.com/article/407841-caution-for-the-long-term-investor-watch-out-for-a-broadvision-dump
(again, note the focus on fundamentals… some time I’ll start a thread on T2W as to why this is important for stock investors!!)
Just saw this on StockTwits:
$BVSN On the 6th NIA owned 175,000 shares, today they own 58,000 shares. They seem to be pumping and dumping as the stock goes up an down.
On second thought, think I may stay away. Always knew BVSN was a bad investment - just tried to capitalize on the volatility. The day I bought , the stock had hit 56 - figured they would not dump at 51
$BVSN On the 6th NIA owned 175,000 shares, today they own 58,000 shares. They seem to be pumping and dumping as the stock goes up an down.
On second thought, think I may stay away. Always knew BVSN was a bad investment - just tried to capitalize on the volatility. The day I bought , the stock had hit 56 - figured they would not dump at 51
barjon
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looks like a pretty classic pump and dump to me. you might get the occasional flutter in your favour, but is it worth the risk waiting for it when there's a red hot favourite in the "back to where it all started" stall.
Jack o'Clubs
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And just as easily lose $2. That's me done on this thread as you really aren't taking notice of anything I've written. If you want to make back your cash quickly, just get on a train down to Atlantic City and put what's left of your account on red or black. You're just gambling not trading anyway and it'll be more fun than watching this stock burn you to death.
Thanks everyone for their advice. And Jack o'Clubs, I am listening to what you are saying! I printed your first reply - going to use it as a guideline to make a sensible plan.
I mentioned above - was going to stay away from BVSN !:>
Going to take my time and maybe start with Lenar, Wells Fargo and Fushion- IO. I
I mentioned above - was going to stay away from BVSN !:>
Going to take my time and maybe start with Lenar, Wells Fargo and Fushion- IO. I
Jack o'Clubs
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counter_violent
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I forget exactly how the saying goes, but it's something along the lines of....you don't need to get losses back on the instrument that lost you the money...
That's good advice and what I need to hear. I can't even look at BVSN. Gives me a bad feeling. It will probably go up tomorrow.. Could have possibly waited to sell, but I think I did the right thing.. It also could have dropped $10 more. I just have to let it go and move on.