Yesterday, I bought SENS towards the end of day based on a good chart and decided to hold through close as it had all the indications that it would continue to rise today.
And, it did rise...in premarket. It was up and beautiful, and I had visions of wonderful gains dancing in my head. On market open, it immediately plummeted. Should have entered in a limit sell after I bought it :{
After the initial fall, it has stayed almost in the exact same range all day. This is called consolidation and usually happens before the stock makes a big move.
I believe that because the overall markets are down buyers aren't quite as active today...something my day trading book said would happen.
So, I'm breaking my own rule and will hold SENS until tomorrow. I will definitely sell it tomorrow without a doubt. I have also created a new rule to use for picking stocks that I want to day trade:
1-Make 5 stocks to look at from pre-market change
2-Wait until 10 to see how stocks are moving, analyze the charts, and have bias towards any stock that is moving based on news.
3-Sell based on the chart only-don't keep holding for possible bigger gains because those only result in definite losses.
I got greedy with SENS. I kept holding when I could have set a limit for it with a 3% gain. Lessons learned. It made my day very boring to watch one stock stay almost the exact same price all day.
No comments:
Post a Comment