LCB drop was scary. But was not the first time, it was the third time. Like any stocks, it has to drop in order to lessen the resistance. Anyway, for those with losing position or wants to take profits, you can sell anytime.
It has always been my experience that I never benefited much from a move if I did not get in somewhere near the beginning of the move. And the reason is that I missed the back log of profit which is very necessary to provide courage and patience to sit through a move until the end comes. And to stay through minor reactions or rallies which were bound to occur from time to time before the movement have been completed its course. Livermore
5 comments:
Sir Tracer, would you still not consider this drop(like the 2 previous ones) as a danger signal?
Normally 6% intraday drop is danger signal, what more 12%. The first to drops was also, 12%, as long as i am not losing, i can ride it out. As per Rascke quote, when trending, your stops must be wider, stocks that forms parabolic rise, expect a strong retracement.
So basically it's just a signal to tighten trailing stops then since the price is way ahead of the entry price?
It is a signal to watchout, 12% drop is not a joke, but if you are still gaining why bother, the second time it dropped, i panic too, and have to re-enter at new high. Now looks like with qe3 factored in the market, so, looks like happy days are here again.
Thanks sir. I was already panicking when it continued to slide down for the 2nd day. Good thing I resisted the urge to sell.
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