Obviously my stop will get hit at the open tomorrow but I don't
know if I should get rid of them in AH trading, I don't have any
experience with that so just looking for other member's
experience. Thanks in advance for any insight.
Well I sold, took a 50% loss. I had a nicely placed stop,
defined my risk, and still wiped out several thousand
dollars. I've never had that happen (maybe I've been
lucky). This seems like a nice community. I don't post
but read a lot of the posts. I'm feeling pretty discouraged
and am looking for support. Has anyone had this happen to
them? What should I have done differently? Thank you in
advance.
Posted by junkmaylbox on 9th of Jun 2009 at 06:02 pm
Lucy, I presumed you were long. Your timing of the entry was
likely way off, financials should be bought within days on a new
rally. it is on the support now but I would not expect it to bounce
off here.
Yes, I took a 33% loss on NXG last year. The common thing
between these two are they are both cheap stocks. You might be able
to recoup some of your losses by shorting CNB later this summer, it
looks weak enough to be a short candidate. Good luck!
Posted by junkmaylbox on 9th of Jun 2009 at 06:10 pm
One more thing. CNB failed its breakout around May 10 from a cup
without a handle. The entry point should have been at 2.20 with at
most 8% stop loss. But still, the pattern was error-prone because
the rise was too steep.
Another valid entry point was at 1.25 from a cup with a handle
shape. Selling it after a failed break-out around 2.00 would have
been a good trade completion. More of this methodology is on
www.investors.com (IBD).
My problem was what to do in AH when it slices through the
stop. Dump in AH? Or wait for the open the next
day? I got rid of it in AH. But this has never happened
to me. So I didn't know what to do. I was looking for
guidance from other members about this. I'm sure with all the
experience on this board many people have dealt with it and can
offer some perspective. At least I am hoping that is the
case.
Posted by junkmaylbox on 9th of Jun 2009 at 06:29 pm
I would not wait till after hours to exit a trade: one cannot
get a market price then. You should have been out of the trade much
earlier than today AH. I told you a couple of indicators to watch
for warning signs. I know if feels different while under the
pressure of mounting losses. You should have asked a question about
it on the blog when you were concerned about your losses, and
someone objective like myself would have answered you. Also, set a
stop before you enter the trade unless you know what you are doing
(I tend to move my stops while in a trade hoping for a miracle.
About 80% of the time I would lose more this way then with a stop
before the trade).
I didn't have losses until AH - that's when it tanked. My
stop was set appropriately. To reiterate my question - what
to do when it tanks after hours?? It closed at around 1.20
and is now trading around 0.80 or so. So this was not an
issue before AH today.
Posted by junkmaylbox on 9th of Jun 2009 at 06:55 pm
Lucy, If something happens after hours, you could not do much.
You did the right thing: get out as soon as you could. I was saying
that there were signs of weakness before today, on the chart.
Recognizing them is an art, which comes with experience.
Posted by junkmaylbox on 9th of Jun 2009 at 06:47 pm
I understand. On one hand, you could not have predicted this
tanking tonight: it's an act of God, so to speak, which is not
found anywhere on the charts. On the other hand, it was not moving
up like it should have been _before_ today. The daily chart shows
signs of distribution... If this were a gold stock, I'd re-enter it
after its price dropped more tomorrow. Because it's a banking
stock, I would take my loss and move on. I hope my critical
comments help. Good luck!
Sorry to hear about your loss. That's painful. One bit of info
to throw in with your other thinking about this -- if you only
trade ETFs you're less likely to have such a catastropic move
because usually those are company specific. Of course when Matt
nails a move it's a beautiful thing so you'd be giving that up. A
trade-off as usual.
Posted by philosoraptor on 9th of Jun 2009 at 06:37 pm
I have no idea what happened with CNB during the course of your
trade [i.e. whether you were in profit at any stage], but remember
Matt's mantra that he often repeats in his newsletters:
"after an inital good move, take half off the table and move
your stop up to the entry/breakeven price, thus guaranteeing
profits" (or words to that effect)
Of course, whenever you keep a trade open overnight, there is no
such thing as a 'guaranteed' stop loss. However, by locking in
profit on half of one's position during the trading day, any
alarming price movement overnight only affects the remaining half
and by definition mitigates any losses.
Thanks guys. It was a normal position size for me, with
not a lot of risk at my stop price. However, that was about
$0.40 higher than I sold for! Which is what makes it so
painful. I normally trade the ETFs but there hasn't been much
action there lately so I've taken to individual stocks. This
is precisely why i don't like to trade them! I'm not a very
good stock picker either so I'm usually better off with the
ETFs. This isn't a huge set back, I will recover, just want
to learn from these experiences.
Thanks for the reply. CNB was one of the watchlist ideas
here by Matt or Steve. It looked like a nice pattern to me so
I bought it close to the 50 day ma. They got a cease and
desist from the FDIC so have tanked after hours. I guess
there is no foreseeing this but it is painful to experience.
Wiped out the last few weeks of profits.
There once was a stock called CAFE.
I bought for an overnight stay.
When the market opened up
The SEC got tough and halted the stock for days.
Days became weeks and weeks,
I was ready to freak.
The position was big.
Because I was a pig.
This piggy went home with none.
Posted by junkmaylbox on 9th of Jun 2009 at 06:22 pm
Well, losses happen. Checking an index stock for the group
before an entry is another good practice. XLF had reached its
target of 200MA by early May and was moving sideways. CNB was a
late starter, so it was a potentially risky trade. I would not put
too much money into such a trade, because it's a gamble. Any
misstep and I would have been out of it.
Honestly I don't have luck with financials myself: I lost more
than gained on them.
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CNB
Posted by fixdgear on 9th of Jun 2009 at 04:16 pm
MATT what happened to CNB?....OOOO got out just in time.lol
CNB
Posted by lucy on 9th of Jun 2009 at 05:17 pm
Any advice on what to do with this one, I'm holding 10,000 shares.
CNB
Posted by fixdgear on 9th of Jun 2009 at 06:37 pm
DUMP IT...DID U SEE THE NEWS?....
U CAN MAKE IT BACK ON ANOTHER ONE...
I LIKE ETFC ...FOR A CHEAPER STOCK...
CNB
Posted by lucy on 9th of Jun 2009 at 05:36 pm
Obviously my stop will get hit at the open tomorrow but I don't know if I should get rid of them in AH trading, I don't have any experience with that so just looking for other member's experience. Thanks in advance for any insight.
CNB
Posted by lucy on 9th of Jun 2009 at 05:54 pm
Well I sold, took a 50% loss. I had a nicely placed stop, defined my risk, and still wiped out several thousand dollars. I've never had that happen (maybe I've been lucky). This seems like a nice community. I don't post but read a lot of the posts. I'm feeling pretty discouraged and am looking for support. Has anyone had this happen to them? What should I have done differently? Thank you in advance.
On a bright note CNB
Posted by lachasse on 9th of Jun 2009 at 06:32 pm
On a bright note CNB is up 60% off it's lows AH. Yet with so many good stocks out there I'm wondering why such a POS was every considered....
CNB
Posted by mikeovanes on 9th of Jun 2009 at 06:47 pm
Could not agree more, why is a POS even on buy list...
CNB
Posted by junkmaylbox on 9th of Jun 2009 at 06:02 pm
Lucy, I presumed you were long. Your timing of the entry was likely way off, financials should be bought within days on a new rally. it is on the support now but I would not expect it to bounce off here.
Yes, I took a 33% loss on NXG last year. The common thing between these two are they are both cheap stocks. You might be able to recoup some of your losses by shorting CNB later this summer, it looks weak enough to be a short candidate. Good luck!
One more thing. CNB failed
Posted by junkmaylbox on 9th of Jun 2009 at 06:10 pm
One more thing. CNB failed its breakout around May 10 from a cup without a handle. The entry point should have been at 2.20 with at most 8% stop loss. But still, the pattern was error-prone because the rise was too steep.
Another valid entry point was at 1.25 from a cup with a handle shape. Selling it after a failed break-out around 2.00 would have been a good trade completion. More of this methodology is on www.investors.com (IBD).
CNB
Posted by lucy on 9th of Jun 2009 at 06:15 pm
My problem was what to do in AH when it slices through the stop. Dump in AH? Or wait for the open the next day? I got rid of it in AH. But this has never happened to me. So I didn't know what to do. I was looking for guidance from other members about this. I'm sure with all the experience on this board many people have dealt with it and can offer some perspective. At least I am hoping that is the case.
I would not wait till
Posted by junkmaylbox on 9th of Jun 2009 at 06:29 pm
I would not wait till after hours to exit a trade: one cannot get a market price then. You should have been out of the trade much earlier than today AH. I told you a couple of indicators to watch for warning signs. I know if feels different while under the pressure of mounting losses. You should have asked a question about it on the blog when you were concerned about your losses, and someone objective like myself would have answered you. Also, set a stop before you enter the trade unless you know what you are doing (I tend to move my stops while in a trade hoping for a miracle. About 80% of the time I would lose more this way then with a stop before the trade).
I didn't have losses until
Posted by lucy on 9th of Jun 2009 at 06:35 pm
I didn't have losses until AH - that's when it tanked. My stop was set appropriately. To reiterate my question - what to do when it tanks after hours?? It closed at around 1.20 and is now trading around 0.80 or so. So this was not an issue before AH today.
Lucy, If something happens after
Posted by junkmaylbox on 9th of Jun 2009 at 06:55 pm
Lucy, If something happens after hours, you could not do much. You did the right thing: get out as soon as you could. I was saying that there were signs of weakness before today, on the chart. Recognizing them is an art, which comes with experience.
I understand. On one hand,
Posted by junkmaylbox on 9th of Jun 2009 at 06:47 pm
I understand. On one hand, you could not have predicted this tanking tonight: it's an act of God, so to speak, which is not found anywhere on the charts. On the other hand, it was not moving up like it should have been _before_ today. The daily chart shows signs of distribution... If this were a gold stock, I'd re-enter it after its price dropped more tomorrow. Because it's a banking stock, I would take my loss and move on. I hope my critical comments help. Good luck!
Sorry to hear about your
Posted by bkout3 on 9th of Jun 2009 at 06:27 pm
Sorry to hear about your loss. That's painful. One bit of info to throw in with your other thinking about this -- if you only trade ETFs you're less likely to have such a catastropic move because usually those are company specific. Of course when Matt nails a move it's a beautiful thing so you'd be giving that up. A trade-off as usual.
I have no idea what
Posted by philosoraptor on 9th of Jun 2009 at 06:37 pm
I have no idea what happened with CNB during the course of your trade [i.e. whether you were in profit at any stage], but remember Matt's mantra that he often repeats in his newsletters:
"after an inital good move, take half off the table and move your stop up to the entry/breakeven price, thus guaranteeing profits" (or words to that effect)
Of course, whenever you keep a trade open overnight, there is no such thing as a 'guaranteed' stop loss. However, by locking in profit on half of one's position during the trading day, any alarming price movement overnight only affects the remaining half and by definition mitigates any losses.
Thanks guys. It was a
Posted by lucy on 9th of Jun 2009 at 06:34 pm
Thanks guys. It was a normal position size for me, with not a lot of risk at my stop price. However, that was about $0.40 higher than I sold for! Which is what makes it so painful. I normally trade the ETFs but there hasn't been much action there lately so I've taken to individual stocks. This is precisely why i don't like to trade them! I'm not a very good stock picker either so I'm usually better off with the ETFs. This isn't a huge set back, I will recover, just want to learn from these experiences.
Thanks
Posted by lucy on 9th of Jun 2009 at 06:08 pm
Thanks for the reply. CNB was one of the watchlist ideas here by Matt or Steve. It looked like a nice pattern to me so I bought it close to the 50 day ma. They got a cease and desist from the FDIC so have tanked after hours. I guess there is no foreseeing this but it is painful to experience. Wiped out the last few weeks of profits.
Sorry for your loss
Posted by paige386 on 9th of Jun 2009 at 09:43 pm
A small poem to tell my story....
There once was a stock called CAFE.
I bought for an overnight stay.
When the market opened up
The SEC got tough and halted the stock for days.
Days became weeks and weeks,
I was ready to freak.
The position was big.
Because I was a pig.
This piggy went home with none.
Just to point out it could be alot worse
CNB
Posted by rgoodwin on 9th of Jun 2009 at 07:44 pm
Guess my timing was better........They USED TO BE my Bank!
Well, losses happen. Checking an
Posted by junkmaylbox on 9th of Jun 2009 at 06:22 pm
Well, losses happen. Checking an index stock for the group before an entry is another good practice. XLF had reached its target of 200MA by early May and was moving sideways. CNB was a late starter, so it was a potentially risky trade. I would not put too much money into such a trade, because it's a gamble. Any misstep and I would have been out of it.
Honestly I don't have luck with financials myself: I lost more than gained on them.