Thursday, April 14, 2005

MCRI


A lesson beginners should keep in mind. Please look at my trading rules at right side of the blog. Never let a breakout play return to its base. Posted by Hello

6 comments:

Anonymous said...

can you explain it ?

Anonymous said...

if you consider the market is downing, why not sell short?
I have a friend works in chiron, she told me chiron is good to buy , because they have some pruduct lines are ready to go....
it is better than PFE. HEHE

UCLATRADER said...

Sure. This was a breakout play, the buy signal was triggered at 21.5. What I am looking for a breakout play is that it will start a strong uptrend that should last several weeks or months. A stock on the move should never act sluggish or return to its consolidation base. If it does, it means weakness and there might be something wrong with it. My strategy is to get out and to find another play. In this case, MCRI acted well before today. But the gap down this morning was a warning sign and you should always have a stop near its breakout pt, which is 21.5 area. When it goes down there, the stop will automatically take you out and protect your capital.

Anonymous said...

when you bought at yesterday, you know the breakout point is 21.50 , normally the stop price will be 20.85, then today the price dropping , and below the the 21.50, what can you do , market price sell out , all still hold it till it pass the stop price ??

UCLATRADER said...

First of all, I always think the big money is made from long side. You can make 500% on longing a stock, not shorting it. Second, I think this market is not a bear market yet. We are in a pull back mode and sitting on support. That is why I am not agressively looking for shorts now

UCLATRADER said...

I usually will sell at market. But there are other ways, like sell half at market, sell the other half at the stop price.