I'm currently running a short position on Nortel via SB @$4.79 and it's risen to $5.38 does anyone know is the stock is likely to drop soon back to its old level using charts anaylysis, tech or other, shall I cut me loss now!
Cut losses now, you are holding this in hope and that is the path to ruin in trading. No-one knows for definite which way the stock will go but you have already seen it rise by 12% how much more are you prepared to lose before realising that this trade is not working.
Remember this if nothing else for the future:
A losing trade very rarely turns into a profitable one.
The first rule of shorting a stock is to see if there are any other sellers moving in or not.. The chart clearly shows no sellers what so ever .. No weak ness at all last past 11 days.. So it would not be technically correct to short a strong stock .. this is the first rule of trading ..
NT is up by 13% to day and that has no technical reason .. The rise is news driven and that is because of the deal with VERISON . The rise last past few days has been due to the anticipation of the deal ..
How ever if you are still short, there might be a good correction 2morrow .. ..
can I say a word of advice? this is my opinion only of coz. And again u may hv pockets big enough to weather a 12% loss on a stock. E.g. if u check some Indata's recent issues they r favouring a 19% (!!!) trailing stop loss on pharma stocks.
BUT - what works for me - 5% on an individual isuue - NOT INDEX FUTS - I am out.
U may want to be very precise in defining yr pain level mate.
also - matey - sorry to post here again - I used to trade NT extensively - there are 2 Canadian stocks worth trading (IMO) - Nortel and JDSU - and if u trade them u may be better off trading the real canadian issue rather than their US ADRs. Just my experience of coz