Unusually, these stocks come back to previous levels the next couple of days. It is a very good point to buy and make good profits right way. One has to wait, wait, wait, till it is good time to buy on the dip in the rally.
Friday, November 5, 2010
Certain stocks in rally, have an unusual dip during the opening of the day. This dip goes around 10% below the 30 day moving average. One has to be caution to keep the Stop Sell more than 10 % to prevent this kind of sell off of the stock. This happened to me with HS. I should have got back into it immediately but did not and that caused me significant loss. Anyway, this is a lesson to learn to always keep the Sell stop more than 10 % on these low capital and low number of share stocks. It usually happens when some one has dumped the shares and took the profits. There is a high volume with the plunge of the price. This means someone has dumped the shares.