My first newb mistake....

[asudaab]

I bought 100 shares of CNXT at 1.85 a few weeks back based on a Cramer recommendation. I figured this would be a good cheap stock to start with, since I'm fairly new to trading stocks.
After watching it do nothing for weeks it finally started moving today. I currently trade with Scottrade which charges a $7 commission to buy and sell, so I figured the stock would have to go to at least 1.99 to really break even. After watching the stock go to 1.99 I tried to put in what I thought was a limit order to protect any profit I might have made.
So I did a sell stop limit at 1.99, only to log back on a couples hours after and see that it SOLD at 1.99. So I have a few questions:

1. Should I have used a trailing stop with preset points?
2. How do you guys protect your profits?
3. Does this also work in reverse to not extend losses?

[auedakovotisi]

One question for you? Do you know where any of the major support/resistance areas are for CNXT? If the answer is no then just stop trading in real $$$ until you learn how to establish where support and resistance areas are. You can always practice at a trade simulator like the free site einvesting.com offers. You can't set proper stops or sell limits if you don't know where the support/resistance areas are, just that simple. Don't waste your time investing/trading unless you know or you will most certainly lose over time. Good luck to ya!

[awuropeu]

Cramer does not believe in stops, and whether it amounts to anything or not, I agree.

[axehojouojezo]

What a coinkidink. I just sold my CNXT today also at $2.11. Nice little profit from $1.88. I dont believe in stops, I watch the stock and sell using a mental stop loss. Otherwise you can get sold out on minor gyrations in the stock and kick yourself once the stock takes off.

[bcar1qyd]

It all depends on how much the share price is. If you have a 2 buck stock you need to give it some space...example 15 (30 cents) If its a 40 buck stock 5 2.00) Booyahoo is right...