Trust the technicals. Another mantra to seal into the memory. So much selling pressure was on Research in Motion in the past week, regardless of bad economic numbers or the (previous) silence of the Fed. Looking back to Monday's blog about pyramiding, here's what that process would have generated with RIMM.
Thursday, 120, 10%
Friday, 113, 20%
Monday, 104, 30%
Tuesday, 101, 40%
Prior to Thursday, I'd been trading swing shares of RIMM without much caution and made a decent profit on two trades. This pullback hurt, but the lesson is carved in stone: 1) pyramid into a position, 2) trust the technicals and 3) always set a stop-loss order. At 120, RIMM was expensive, trading above its moving averages and due to pull back.
RIMM opened a few minutes ago and had a high of 106.31, well above yesterday's close. Already sold down to 104.55. Another volatile day ahead.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment