Bought at $4.20 late January. Stock was trending up nicely
the past few days. Had my stop loss in place at $4.51.
Closed Friday at $4.85. Opening print (1st minute)
Monday was $4.83 on 500 shares traded. Next print (2nd
minute) was down $0.52 at $4.31 on 11,000 shares traded and I was
taken out of my position (1,000 shares) at that price. Then
price immediately reversed. Next trade (3rd minute) was up
$0.37 to $4.68 on
only 300 sharestraded, followed by $4.85 on another
300 shares traded. Stock closed the day at
$4.99 on total volume of 54,500 shares.
Feel like I was robbed. Was this manipulation by the
market maker (to take out stops) or was I just unlucky due to one
large seller? More importantly, did I do anything wrong and
what step(s) can I take to avoid a similar fate going forward?
Posted by McFly1985 on 5th of Feb 2019 at 08:55 am
@ RichieD - That's unfortunate, but things like that are fairly
common with those low-priced, low volume stocks. One thing you can
do to set your expectations a bit is to look at past candle
structures. With MTEM, for instance, you see some pretty huge wicks
(mostly up, but sometimes down). That would tell me to expect that
kind of thing in the future. That's also one reason I almost always
trade higher-priced, higher volume stocks.
MTEM: Any way to prevent
Posted by RichieD on 5th of Feb 2019 at 06:21 am
MTEM: Any way to prevent this in future?
Bought at $4.20 late January. Stock was trending up nicely the past few days. Had my stop loss in place at $4.51. Closed Friday at $4.85. Opening print (1st minute) Monday was $4.83 on 500 shares traded. Next print (2nd minute) was down $0.52 at $4.31 on 11,000 shares traded and I was taken out of my position (1,000 shares) at that price. Then price immediately reversed. Next trade (3rd minute) was up $0.37 to $4.68 on only 300 shares traded, followed by $4.85 on another 300 shares traded. Stock closed the day at $4.99 on total volume of 54,500 shares.
Feel like I was robbed. Was this manipulation by the market maker (to take out stops) or was I just unlucky due to one large seller? More importantly, did I do anything wrong and what step(s) can I take to avoid a similar fate going forward?
Here's the daily chart: https://stockcharts.com/h-sc/ui?s=mtem
Stops are often run near
Posted by steve on 5th of Feb 2019 at 09:10 am
Stops are often run near open - consider removing for initial 15 minutes of trading on such stocks
@ RichieD - That's unfortunate,
Posted by McFly1985 on 5th of Feb 2019 at 08:55 am
@ RichieD - That's unfortunate, but things like that are fairly common with those low-priced, low volume stocks. One thing you can do to set your expectations a bit is to look at past candle structures. With MTEM, for instance, you see some pretty huge wicks (mostly up, but sometimes down). That would tell me to expect that kind of thing in the future. That's also one reason I almost always trade higher-priced, higher volume stocks.
It's a low volume stock
Posted by tgo5043 on 5th of Feb 2019 at 07:48 am
It's a low volume stock (only 54,000 for day). Easy to manipulate.