Beacon Power, 30-minute Chart
You have to go where the action is, and yesterday that meant looking to the Nasdaq Small Cap Market.
The purpose of these (repetitive) Q&As is to hammer home basic trading techniques. People like to make things hard,
but keeping a simple approach is best.
1) Why would you be paying attention to this stock yesterday?
2) Is the trend up or down? Would you be looking to get long or short this stock?
3) Where would you get long/short this stock yesterday?
4) Where would you put the initial protective stop?
5) When would you stop trading for the day?
6) Where would you exit the position?
1) Because it was unusually active, and very volatile.
2) Up. You'd be looking long.
3) Long at 0.62 on a buy stop above the 11:30 bar.
4) Tighter: 0.57. Looser: 0.54.
5) Right after you enter the position or lunchtime, whichever comes first.
6) End of day. Could sell half, carry half, or just close it all at once.
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