IMO, that is the wrong procedure.
You have a good brain. Ponder this.
When one is going down, nobody knows how low it will go.
When one is going up, nobody knows how high it will go.
SO. Buy going up.
Sell going down.
Most do the opposite.
Don't just jump me. Think about it. Just now with JBII, you don't and can't know how low it will go so it is the wrong time to buy, IMO. If it starts back up and gets to, say $5, jump all over it.
Get caught in a couple that go all the way down, and you will learn.
Sell one at $40 and watch it go to $440, and you will learn.
Continue to buy as long as it goes up, BUT get the H out when it turns(your feel here)
So it goes to $7.50 and you have bought all the way up from under a dollar. Bail at $6.50. Huge profit. It turns and goes straight up. You can't protect your from every possibility, but you can prevent huge losses that hurt. In the above case, If I bailed at $6.50 and it turned up, I would forget it or buy it back at say $8.
Forgetting about it is probably best because just like streetcars, there'll be another one come along in a few minute.
I have never lost money following those rules. I lose when I get all mushy about one[vs. following the rules]and average down, buy on dips,etc.
I hate to type this but I am for you. I bought 2000 shares of a stock at $40. Had my rules written down. Made myself follow them. There were times I said I just can't buy this high but I stuck to the rules and used my buying power daily, placing order to buy at market on the open. My last purchase was at $440. I bailed at $400. I made $2.6 million in 30 weeks. [I have rounded off on the figures]
How about the guy that sold to me at $40?
I am done with the boards. Only thing I have learned is that Raw and BBKing are GOOD. I can use that and, with my rules make some money. I will follow them.
My rules[which I have broken in this market because I'm stupid]will keep you from having a massive loss as I and others did on VBDG. Averaged down, averaged down, on and on and it went to zero. Follow my rule and that will never happen to you.
One Veteran to another.
GLTY!!!!
I'm going to catch one more before I check out. Just not many runner anymore. And NERVE goes. I had BIDU in the $60's. Did not follow rules and sold out while going up. Look at it now. Made good, but could have had another home run.
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