Forum Archive Index - November 2001

["chris giddings" <blitz1@ihug.com.au>]

I'm finding that setting the stop loss is by far the hardest thing in position trading.

While watching an ASX stock ,Chemeq, trade over the last 7 days, I've seen the 13 period EMA tested & then the 20 EMA tested. It's forming a classic pennant chart just itching to gap up!

If I'd sold at the 13 EMA, I would have missed the next ride. I'm watching the technicals carefully to see what the "smart" money is doing, but the OBV & Money Flow are holding.

My conspiratorial nature says that the big end of town is selling down small quantities of the stock so as to breach the stop-losses of smaller fish, only to buy it up again.( Or are they selling off small tranches of stock in advance knowing that the stock is turning out to be a dud?)

 

I can see the importance of strict trailing stop-losses when chasing gap plays, but it is really nerve wracking to act on your chart stops on the longer plays.

 

Nice to know I'm not the only one losing sleep over this.

 

Clear sailing

Chris Giddings