Well, this one is related to the learning from yesterday (that stop orders are triggered by bid spreads not actual trade prices, at least at my broker). The lesson today was I was saved from losing additional money because my shares of NEXM were sold yesterday at 11.1 cents even though I had my stop order at around 10.5 cents. This is because yesterday the stock broke a couple months of resistence at 11 cents around 3pm, and at the end of trading today, NEXM closed at 10.2 cents (even with the 800 point jump in the DOW this PM).
LESSON: Don’t buy and hold penny stocks with the hope they will explode because you think they are undervalued and great news is on the horizon. Play them because of what the charts are saying. I should of taken profits at 17 cents and used that money somewhere else. To be fair, I bought this stock with five days of trading experience under my belt, but I held on to it stubbornly hoping it would breakout – fueled by my own delusion and message board hype. Now, I still think the fundamentals of this stock has some upside and will keep an eye on it in the future, but will only use technical indicators on the chart to guide entries and exits – either paper or cash trading.
