I bought NANO with a stop below a solid base at $9.85. I believe this double bottom to be moving up, but only if indexes follow. Currently since I opened the position a couple days ago there has been some profit but that has now turned into a small loss. The pattern still seems to be valid, but the overall markets seem to be in a small correction. Would it make sense to sell and re-buy later? How would one avoid the risk of getting out now only to see a couple days later it shoots up to far to get in? How should I be handling this situation?
There’s lots going on in this question, so I will take it in bites.
First off, I am no fan of technical trading without the knowing the fundamentals of a market. It appears this is the case here, as the fundamentals of NANO are troublesome for a long trade, so one should not expect it to behave according to a predictive pattern, necessarily.
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Letting profit turn into loss, small or otherwise, should not happen. When you have profit, set your stop to keep at least some of the profit.
It makes sense to sell and re-buy a market if you made profit and you can buy again on weakness. Otherwise, if you believe in your trade, hold onto it and wait for it to comeback. If you lose money in a trade, and the market continues going in the wrong direction, why buy again on that movement? This is how you avoid “getting out now only to see a couple days later it shoots up to far to get in?”
The lack of volume should concern you. It is way off its three-month average, which means the “pattern” is suspect; however, it has run up nicely today, which means it is following the indexes, as you thought. It looks to me as if it is ripe for a nice profit, so take it, if you have it.
Trade in the day; invest in your life …
