Making money the belgarion way
Quote:
Originally Posted by
belgarion
Am I the only that got stopped out today? ... Surely a 8 plus per cent fall would stop you out of most stocks? ... Or am I - once again - doing it wrong?
Hopefully we all have our different ways of doing things, and if it works for you that is fine.
My first stop is currently (end of today) at $11.77. However given that I own zero Xero, it is a little theoretical :(.
Go with the flow &
Best Wishes
Paper Tiger
A Picture is worth a Thousand Words
Quote:
Originally Posted by
belgarion
PT, how did you come up with that number? My was a gut "sharp rise / no info / take the money" sort of thing. Your logic? Much appreciated.
Attachment 4486
So the black line is the XRO daily close for the last six months and the four beneath are 'Exponential Trailing Stops' for which the magic numbers are:
4% and 32 days
8% and 16 days
12% and 8 days
16% and 4 days
Instead of rising immediately to some % from the days action they move exponentially up towards their (moving) target.
With XRO attempting to break the Earths gravitational field recently these stops have:
got inverted - the 16% is higher than the 12% etc;
left reasonable room for manoeuvre for a bit of sanity (relatively speaking) such as today/yesterday.
The highest of the four is now sitting at $11.77.
Now if I had bought recently I would have a stop about 8% below my purchase price and would be watching carefully at open tomorrow.
Note I manually act on stop signals and I use a bit of FA/gut instinct/dice throws to decide which of the four to act on.
Best Wishes
Paper Tiger