Willsimon...I apologize. I had no intent to imply stop loss points were "stupid".
I do emphatically state this. In a small cap stock, with the control of the major trading of shares in the hands of the market makers, and until the company shows steady feet as a real entity worthy of major house institutional support and corresponding public recommendations to support retail over market maker activity on balance...setting lock stop loss physical orders against your shares is really really not wise.
You will get clocked. I warned about today's possibility yesterday in a post. And it happenned. I have seen it countless of times in small cap stocks I have owned....and have paid the piper painfully for doing it myself.
Trust an old bird...set a mental stop...wait a beat...then execute if you must.
Those that had a stop at 2.90-3.00 today were lucky in the down draft if they were not clocked out at 2.52.
That is a serious haircut. Only reason she got that low is one. A ton of stop losses triggered a landslide cascade...and once that starts, there is noting you can do. The very good news is that she didn't close down there at 2.52. That would have been a distribution signal as the MM's didn't want it either. The Hammer bounce said they accumulated the sales, in spades.
Had none of them had been there (stop losses), I believe we would have finished back into the 3.15 + channel.
regards,
M
Before dawn there is darkness.
AI
