Posted by joostlou on 12th of Oct 2020 at 01:10 pm
ZYXI: Gapped down on opening and jumped my stop limit.
I notice it's SS restricted till 14Oct. and wonder whether I
should hold on or sell: do you expect it to break down further
after the 14th or rather find support at the what looks like
support at around 14?
You didn't have a stop in place? It gapped down below
Friday's low after cutting guidance - one must have a PLAN in place
that includes an EXIT STRATEGY. Today's news was pre-market
and gave you time to act. Get away from using stop limits
unless you can react to news. This is simply a trading stock
and I'm certainly not familiar with their fundamentals and would
have exited stage left on that news. Understand, we cannot
provide direct trading advice so you must adhere to your plan.
This will be another item to discuss in the educational
examples - although rare, pre-announcements can be good or
bad ahead of earnings. Lastly, with a plan you avoid having
to make decisions of what to do like today - you already have the
exit in place and simply adhere to your plan and accept the
outcome. Sometimes we get a positive surprise and other times
a negative headline - it's part of trading.
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ZYXI: Gapped down on opening
Posted by joostlou on 12th of Oct 2020 at 01:10 pm
ZYXI: Gapped down on opening and jumped my stop limit. I notice it's SS restricted till 14Oct. and wonder whether I should hold on or sell: do you expect it to break down further after the 14th or rather find support at the what looks like support at around 14?
You didn't have a stop
Posted by steve on 12th of Oct 2020 at 01:18 pm
You didn't have a stop in place? It gapped down below Friday's low after cutting guidance - one must have a PLAN in place that includes an EXIT STRATEGY. Today's news was pre-market and gave you time to act. Get away from using stop limits unless you can react to news. This is simply a trading stock and I'm certainly not familiar with their fundamentals and would have exited stage left on that news. Understand, we cannot provide direct trading advice so you must adhere to your plan. This will be another item to discuss in the educational examples - although rare, pre-announcements can be good or bad ahead of earnings. Lastly, with a plan you avoid having to make decisions of what to do like today - you already have the exit in place and simply adhere to your plan and accept the outcome. Sometimes we get a positive surprise and other times a negative headline - it's part of trading.