| How many times have you placed an order to | | | | sure it could rebound and fly for a ton, but it may |
| buy a stock and immediately sat and watched as | | | | have just saved you from a nasty beating. |
| the darned thing falls apart in front of you?! A | | | | More times than not a stock that looks good and |
| few we'd bet because it has happened to all of us | | | | has a lot going for it, gets some very special |
| at one point or another. The real difference is | | | | "manipulation" from the market makers. Their job |
| what you do about it. | | | | is to make money and they know full well what's |
| Unless you are so rich that losing money doesn't | | | | hot and what's not. If you play this game long |
| hurt you, we would venture a guess and say that | | | | enough you will see some of the oddest moves |
| you generally do a little homework before you | | | | you could imagine and all of them are intended to |
| place your hard earned money in a stock. Well, if | | | | get your money! So, sometimes when we have a |
| you have taken a recommendation, done your | | | | good stock that is going completely the wrong |
| homework and decided that the XYZ stock is a | | | | way on a good day, it has a lot to do with |
| good buy, but the minute you buy it it starts | | | | "where the big guys" want the price on that day. |
| falling, you have to do some quick decision | | | | You will often find that selling back out and |
| making. | | | | "re-buying" some right before the close will |
| First off, how is the health of the overall market? | | | | reward you the next day. |
| As you know (from us preaching it to you) it is | | | | One last note about this topic. There are times |
| the "tone" of the overall market that determines | | | | when you simply made a bad move. Maybe you |
| on a day to day basis if stocks are going to rise | | | | hopped on a high flyer right at the very top, or |
| or fall. In other words, if the NASDAQ is down | | | | maybe the stock you just bought gets a mid day |
| 100 points from the open, unless XYZ had some | | | | downgrade and falls like a rock. But, one of the |
| big news, it is probably in the toilet too. So, before | | | | most important aspects of trading is getting a |
| a total panic, look at the health of the market | | | | good "entry", so, if you enter something and its |
| first, this is where the BONUS SITE also comes in | | | | falling on you, don't wait around too long to see |
| handy. | | | | where the faling stops, get back out quickly. |
| Okay, the market is fine, the NASDAQ is up 35 | | | | There is a big difference there. For instance, let's |
| but the stock you bought for 50 is now at 48 | | | | say we buy XYZ at 50 and it ends the day at 52. |
| and still sinking. Now what? Next, did it gap up 5 | | | | Now the next day it pulls back to 51.25, should |
| bucks from yesterday? In other words, did you | | | | we dump? Probably not, it is just clearing its |
| buy at the morning's high and now it is just | | | | throat. But, if we buy something at 50 and ten |
| "closing the gap?" | | | | minutes later its 48.50, we didn't get such a great |
| This is why we say "don't buy the opening gap" | | | | entry price did we? No, and we don't know when |
| folks, often it is the very high of the day and | | | | it will stop either. We wouldn't let a situation like |
| never gets back there. This is a good time to | | | | that get out of hand, because if we hold it and it |
| review the special report on TRADING GAPS. | | | | ends the day at 47, we have to have a darn nice |
| Okay, the market tone is good and we didn't buy | | | | day the next day, just to break even. |
| at the morning high, now what? This is the tough | | | | The bottom line is that we need to assess the |
| part. If all our research and homework says XYZ | | | | best possible entry period on an issue so that we |
| is a good buy, but the street starts to sell it off, | | | | get some profit right away. |
| we have found it is best to hop back out and | | | | That way we can "live with" a bit of a pull back |
| take your loss rather than "hoping" it back up. In | | | | and still be in a winning position. History has shown |
| other words, never go against the market. | | | | us that if we buy something and immediately |
| Remember the old adage "don't fight the tape?" | | | | start losing on it, we probably could have picked a |
| Well that means no matter how good something | | | | much better entry price and will bail out quickly |
| sounds, if the street doesn't want it, it isn't going | | | | with a small loss versus riding it down. We will |
| up friends. In times like that it is often best to set | | | | expand on "entering" a stock in another issue. |
| your stop and obey it. If you get stopped out, | | | | |