This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
I closed a trade in JSX ENERGY INC (JSXG.PK). I bought it because it made a new high on a volume uptick. I closed it today at my breakeven point. The stop was literally zero, so my position size was very small. My target for this was a double, but in retrospect I should have sold yesterday as it closed weak and volume dried up. This brings me to the conclusion that I need to revise my penny stock system. Not a big deal, since it’s still not even really a system. It’s more of a change of direction in my thoughts. Anyway…
Here’s the chart:
And the daily view:
Trade Summary:
JSXG Long 5 Shares
Entry: $1.85, Stop: $0.00, Target: $3.70
R: $9.25, Exit: $1.88
P/L: 0.02R, or $0.15
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
February 18th, 2007 at 6:04 pm
Hi there,
my first post in a blog, ever! I’m a MSc in management student at Warwick, England and I saw your videos on youtube. VERY helpful website! As Warren Buffet says “I prefer to learn from other people’s mistakes”. I watched the “12 Rules of Wealthy Investors” series on youtube - check them out if you haven’t. And from that experience you could say there was a good resistance around 2.70 for you to sell …but at least you didn’t make any losses!
A question for you: what percentage of your total capital do you normally allow to lose (with a lowest-possible sell stop)? Typical values seem to be between 2 and 15 percent.
Keep up the good work!
Anton
February 18th, 2007 at 10:25 pm
@Anton: I think you mean my videos, and if so, I’m glad you enjoyed them. I risk between 1% and 0.5% per trade. I don’t like to lose money!
February 19th, 2007 at 9:45 am
My typical stop percentage is 1% of my equity, though that is based on a 50% win rate. My win rate is improving, so I’m going to revise that upwards, but no more than 2% at this time.
February 20th, 2007 at 1:01 am
I have been hearing that the pink sheets have really being working on improving their image and gaining more trader/investor confidence………