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View Full Version : Rookie in need of some help



asojoxoomebed
06-30-2015,
Hey guys, i am brand new to this forum and new to the world of trading in general. I got into it about 3 or 4 months ago, I started with O'neil's book and learned the can slim system, as well as read toni turner's book on online trading. For the most part I am good with the general knowledge about breakouts, base patterns, trends, etc... However I am having a real tough time turning a profit. I am seeing that I am entering in a lot of false breakouts or trend reversals.

I guess the best way for the veterans on here to gauge my ability to to provide an example. On Friday (1/30) I bought 250 shares of BRCD at 3.75 because I was tracking the price movement and I predicted that it was going to breakthrough it's resistance of 3.77 in high volume due to the dry up. It did just that, it broke through in very high volume. I intended to make this a swing trade and exit at 4.00. However, over Monday and Tuesday the trend stalled, it moved sideways and then reversed, it dropped past my stop at 3.65 and sold all my shares. It now appears to be reversing again back up today but I am done with BRCD for the time being.

Can anyone help me out and point out what I might have missed that made this a bad swing trade? I don't know how to add in my own charts yet, so you might have you use your own chart tools to construct what I had just described. Thanks.

aspmwjlo23
07-01-2015,
Hello, This market stinks. It contradicts any charts.
Every week it's the same thing a rally and a sell off.
Fear and stupidity crushes the market.
Watch pre market as that sets the course.
Try some ETF's- Skf, Cramer hates it and it kicked ass today.:top:
Sorry, Probably not the awnswer your'e looking for.

Asuqytrau
07-03-2015,
I show it hitting 4.01 on the 30th so I assume you bought it on the way down from there.
I don't think you should beat yourself up too much for this, you traded a plan and it didn't work, that happens.
You could have loosened up your stop a little, $.10 seems a little tight on a stock that moves better than twice that every day. But again I wouldn't get to rough on this particular play.

asudaab
07-03-2015,
I show it hitting 4.01 on the 30th so I assume you bought it on the way down from there.
I don't think you should beat yourself up too much for this, you traded a plan and it didn't work, that happens.
You could have loosened up your stop a little, $.10 seems a little tight on a stock that moves better than twice that every day. But again I wouldn't get to rough on this particular play.

aiki14, Feb 4, 2009 #3
Florida
Florida
Member
won weekly contest 10x
won jan/09 simulator
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First, some experts say that 80% or more of the breakouts or breakdowns fail. You have stated that you have had a problem with entering false breakouts that supports this theory. That being said, don't beat yurself up too bad, as you exited the trade with a small loss, and will live to trade another day.

What you did right,

had a firm stop, and exited at that stop

you picked a stock that is an uptrend to trade long

you entered the trade with a goal that was at least double your stop

what you did wrong,

when you entered the trade, apparently you did not enter a limit order to sell at a profit at the same time you entered your stop to take you out. If you had, you very probably would have been taken out at your $4 goal when it hit that level Friday afternoon

The real breakout point was more in the $3.85 or $3.90 area from early January



Again, nothing to really beat yourself up over, but perhaps a better way to approach breakouts would help. A safer way is to let the stock breakout, then wait for it to pull back and hold at or above the breakout level, then enter the trade when it starts moving up from there. You will miss some that just breakout and run, but again, remember your own results on how many breakouts actually fail.

Good luck,

when you entered you

asyefwxb08
07-04-2015,
HyperD,

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