Blow off tops and why you should utilize stop losses
I posted about Seed a few weeks ago. I purchased on the double bottom (80 Cents) and rode it to about 1.35, when my stop loss got triggered.
Its important to incrementally increase your stop loss trigger as a stock like this takes off or goes parabolic. The correction is brutal and you will give back all your gains if not. (As the stock increased, I had a trailing stop loss about 5-15% below the market price.
I wanted seed to go to 2-5 dollars but still was able to make a good 55% ish gain over the course of a month, also be able to identify what a blowoff top looks like. That nastly candle at the top is when you get out.
Its important to incrementally increase your stop loss trigger as a stock like this takes off or goes parabolic. The correction is brutal and you will give back all your gains if not. (As the stock increased, I had a trailing stop loss about 5-15% below the market price.
I wanted seed to go to 2-5 dollars but still was able to make a good 55% ish gain over the course of a month, also be able to identify what a blowoff top looks like. That nastly candle at the top is when you get out.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.