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

Bouncing off Support

$GLUU has a gift for me today.  After I sold to cut losses yesterday for small losses, it gapped down this morning and continued to head to the support line pronto.  Seeing that it bounced off the support line (see yellow line on chart below), I started to build my position.

Below is the daily $GLUU chart:

GLUU daily chart

See how the yellow line tracked all the way back to the support in Feb and how prices reacted to the yellow lines since then?  It was almost like a magic line.  My action on $GLUU is further proof that cutting losses quickly can result in opportunity to buy back the stock cheaper.

However, nothing is guarantee, my stop will be below the yellow line.

My 2 cents.

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