7 February, 2017 at 6:27 am #3
Dead Cat Bounce
- Posts: 12
Before you enter any trade you should have a view regarding expected profit and acceptable loss.
You should also be using trailing stops to protect your investment.
I note that after you purchased STA the price moved up to 28.50 an increase of about 10.7 % on your purchase price.
A lot of commentators suggest a trailing stop amount of 8%. If you had been using a trailing stop (set at 8%) you would already have been stopped out of your trade (and retained a little profit).
At present you are holding a loss of about 3.5% right?
You may therefore set a tight trailing stop at 4-5 percent, and if you get stopped out your total loss will still be in the 8% range.