Don't pay dollar to keep 2 cents when wrong. Cut your losses quickly. Trade what you see, not what you think.
Joined Oct 26, 2011
719 Blog Posts

Caught a falling knife: DNDN

Caught myself a falling knife without getting cut!  Look at the multiple time frames of DNDN chart.  Good support, good momentum indicator coming up from below.   After aligning my sight to the knife,  I clapped both hands and caught it.

This is not a recommendation to buy DNDN.  DNDN is a highly volatile stock with a strong tendency to overshoot.  It is simply that I like to catch falling knife with a good story.   If there is no follow-thru tomorrow, I may just take my profit and run; but if the run continue, I’m hanging on for the ride…

Good hunting!

Edit: Btw, since I caught the knife near support, my risk level is low.  My protective stop is a few ticks below the previous pivot low.

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