Handling a busted trade...JST....
Weeks ago, we foolishly tried to buy a daily bottom on JST for a trade near the end of a D day and we were served with a big gap down at the open the next day. JST quickly shed more points putting the trade 20% under water. We chose not to stop that trade out given the large opening gap down right after buying.
This is where fundamenal analysis came in handy. We believed that JST had enough going for it that it would rebound and at minimum fill the gap from $30. [it dropped to about $24 in the meantime].
JST has been on the mend and this morning has all but filled that gap. This is the point where we exited that trade at at roughly breakeven [very minor loss] on it's filling it's gap. We retain other JST as a long term hold and will monitor that in a different time frame.
There is another big gap to fill up around $36. That will likely be a tougher- time consuming gap to fill but it should also get filled in due time.
Not stopping a trade can of course turn into a disaster. While risky, taking fundamentals into account can allow one to salvadge a much better exit in a situation like this.
But, you better be right about your assesment as a downtrending D stock can eat you alive.
WATG is scooting nicely above it's 50 day after it, along with most microcap China stocks, suffered a stiff two week correction that brought many of them down to juicy buy points valuation wise. Most have rebounded well even though they are still off their yearly highs.
Fabian
Market Data 
Markets 
AI
