Replies to post #6866 on Worthington Energy, Inc. (fka WGASQ)

[xZx]

coolnapz, the answer to this problem is to scale into a position. don't throw all your cash into it at once. that's probably the most common mistake in stocks.

I agree that there is a weekly chart bull flag. But playing off of a weekly chart leaves room for significant downside volatility intraweek. It's fine to play a weekly chart bull flag if you entered at the lows or upon at least a 50% retrace but my entry was right over a penny off of a daily chart bull flag. If there is intraweek volatility to the downside I could easily be down over 50% on my position and forced to exit.

you said you lost 25% cashing out last week. that's a shame. if you were only 1/3 vested on that first buy-in you'd have a lot more room to play the chart, add on a dip, and turn it into a winning trade.

50% losses are no way to stop out of a trade, either. do that a few times, and pretty soon you won't have any capital left.

the "effective" float here is low, the volatility high. i agree with others who say TA isn't the best tool for a stock like this in its early stages of development. giving equal weighting to TA and fundamentals is probably a better approach. jmho.