Warning on APC - please sell on the rally or just cut your losses  

Posted by Book Eater in


Hello

Today I learn something very important. That you never trade ranges when the long term picture is a downtrend line.

For all people who read any of my posts, I hope my "warning sign" at the left hand portion helps. If you trade anything I say out here, that is your personal decision. Not mine. I hope those who follow me..will also follow my exit trade plans.

Okay...My trade plan was to sell APC only when it breaks my support line (weekly) at .43

However, tomorrow I will sell. The reasons are:

1.) Long term picture is a downtrend line. Since start of July 2, 2007, this one's been in a large downtrend line. It is a very weak stock. I should have never traded this at all. Why did i even think it will touch the resistance line? that was a weak and long shot bet.

2.) Two trading days significantly no volume, and aggressive selling by brokers. Today it closed at its lower low. (at .47 yesterday and today at .46) Very deadly sign.

3.) Volume disappeared.

- basically that.

boo hoo:(

- Nix

2 takes

Anonymous   says Tuesday, 12 February, 2008

Hey Nix, What made you decide to sell APC tom? On your previous blog entry, the weekly chart is showing a possible bounce right? Any thoughts on this? :) Thanks!

Book Eater   says Tuesday, 12 February, 2008

elo harley,

traders are quick to realize when they are wrong. I traded it because my plan was to sell APC on the technical bounce. Now that bounce CAN happen. However, with the disappearing volume, it may take very long for this stock to go up.. my idea lang. also, i traded this dahil i wanted it to reach resistance...but looks like this is such a weak stock. Take a look at the chart. since june22,2007 this has just been struggling in a downtrend line.

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