Tuesday, February 15, 2011

some self reflection

1. If a stock close at the high and gap up next day, sell the stock immediately to take the profit. Because the stock is doomed to pull back. The question is how much it will pull back. If it pulls back too much, it will ruin the previous profit. If it is little pull back, we can always long again at the button to go up again. So sell it immediately.

2. If a stock go up and pull back nicely to the 9MA on 15m chart, the more it stays at 9MA, the more likely it will go down, instead of go up. Better to close the position if it is really bothering. The best way is to wait to see the true direction of the stock breaking from some triangle, flag.

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