WhisperfromWallStreet.com Alert STZU
Posted in Todays Watchlist on 05/22/2009 02:46 pm by adminHello All,
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I have another mid-day alert for you Sun Tzu Corp. STZU. The stock is trading at about .25 cents right now.
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There has been a big increase in activity in this stock today and it looks poised to break out after the holiday.
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Please do your research here http://www.suntzucorp.com and http://finance.yahoo.com/q?s=STZU.PK
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My last mid-day alert went up 80% in two days. I know from the many emails I received that many of you took advantage of this trade and put some money in your pocket today. Good Job !!!!!!
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A few things about UPTR and trading in general. This stock came down hard today after reaching high of $1.10. I received many emails from people this morning and last night asking me if it was too late to get in. As a rule of thumb you should never chase stocks. This means both on the open of the trading day as well as during the day if you see an alert and the stock has already made a big run. There will always be another stock to buy. Do not worry if you miss one. You can not get emotional. To me stocks are just four letters and a number afterwards. They are a vehicle to make money, that’s it. I also got emails from people asking how long I stay in a stock. Each stock is different but I exit for three main reasons:
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1) Because the stock has hit my target objective on the way up.
When ever you buy a stock have a target objective and stick to it.
Don’t worry about money left on the table if the stock keeps going higher. Get used to selling when your at a comfortable profit. For some people this may mean 10, 15, 20 or 25% Only you can determine this. I usually put in a sell limit order in right when I buy it.
That way as soon as it hits that price your out and don’t have to worry about it anymore. This takes the emotion out of it so you don’t struggle with thinking ” Should I sell? Should I hold?” Make it automatic.
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2) Because the stock hit my exit on the way down.
Always have a line in the sand if the trade is going against you. I always tell everyone if the stock goes lower than where I send the alert to BAIL. Some people trade with a 10% risk rule to the downside. Figure out what you want to risk and stick with it. NEVER LET SMALL LOSSES TURN INTO BIG LOSSES. Every big loss was a small loss that someone let go because they couldn’t control their emotions. There is no room for hope and prayer when it comes to trading. If you find yourself doing this get out already.
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3) When momentum shifts hard like it did this morning its time to get out. This usually happens because there is a large aggressive seller in the stock. If you are in a winning trade you should always have a price just below where it is that you will get out if it comes down a bit. For example if you buy a stock at 60 cents and it hits 80 cents maybe you tell yourself if it comes back down to 70 or 75 you are going to get out. This allows you to book profits and not give all your gains back if the stock starts to go against you. There is nothing wrong with hitting singles in the stock market. Nothing is more frustrating than being well in the money but you think its going to come back so you hold on and then the stock goes below your entry. Do not allow this to happen.
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I am going to add a section to the website soon with good trading rules to follow for those of you who are new to this.
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Good Investing and enjoy your weekend.
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WhisperfromWallStreet.com
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