Welcome to the boards. I looked at CNBX on the technical. Have not looked at it valuation wise. The recent move is pretty parabolic which to me means the train has already left the station and now might not be a good time to get on. If one is already in this stock then protecting profits would be in order but new entries probably should wait for a pull back and let it establish a new support level first. IMHO
Any time you catch a big ride up like you just saw that quickly, it's best to start taking some profits. Maybe get rid of part of your position to make sure you get to keep a lot of your profit. It's a good way to ensure that your winning trades stay winning trades. The problem a lot of new traders make is that they get greedy instead of being smart and locking in profits regularly.
thanks i only bought $1000 of it made $1400 profit i will take your advise and pull out the $1000 from the first purchase then only the profit will be riding my other stocks i have small amounts in and i have to let them ride 7.95 going in and out plus higher capital gains tax gobbles profits on small penny stock purchases don't it.
Yep, if you're just starting out, I would suggest Robinhood if you don't have an account large enough to pay for commissions without it eating up much of your profits. Robinhood is zero commissions and generally gets good reviews. The only downside is you can't trade options, and you can't short sell. At least that's what I hear. I've never used it.
IMHO, this is a smart move. Getting your cost of the stock out of the picture and letting the rest ride is a good tactic. I looked at CNBX a little closer and it looks pretty good. The shares you leave in have a zero cost basis so if you feel a little like taking on some risk for potential reward I would consider not getting panicked if this pulls back some as it might. Happens often with parabolic jumps like that. I can't find much info on this company as it looks like it is new and just came on as tradable in October of last year. It appears to me though that this stock has positive annual earnings which is very good. I would consider letting it pull back to around the $2 line to see if it will hold support there. On the current chart, the high of the 3rd candle is $2.27 and the low of the second candle is 2.12. If it stays above that the pull back might work and it could bounce back up. If not you would have to decide if you want to test the next support down which would put it in the $1.25 range. Since you would be on house money with zero cost basis the choice of risk is yours of course but I do like your odds on this one.
FYI, if the stock continues to rise, the amounts listed above would need to be adjusted up but that would be a good thing. Also, if it does pull back to around 2 and shows sign of support there I might join you on the train ride.
It has a high-volume high at $5.00 that wants to get tested and the cause built in the base trading range is enough for a move to $6.65 but pigs get slaughtered. On the other hand, what good is it to have the cock and balls of a bull moose if you never get to use them once in awhile?
It being a penny stock i found out i cannot put a trailing stop loss on it so i will pull my initial amount plus trade fee and capital Gaines in the morning that will leave me with just profit rolling better to be safe during my learning curve get into good habits.
I'd be in or out; no screwing around with the "free shares" non-sense. Besides, you only get one chance at beginners luck, and you still have 15 hours to learn how to day trade....then again, maybe you shouldn't take any advice here too seriously. 15-minute sticks:
Tops are like an orgasm. There was some late Fry day volatility but this doesn't look like an orgasm yet. There was no big supply coming into this market in that trading range; no sign of weakness yet that would nullify the trend. The trend is everything. If you watch intraday, the bid/ask spread will widen suddenly at the top.
Just saying, some of these guys eat a little too much estrogen-rich soy products; voted for Shillary. Stick with meat man. And who in their right mind wants to die in a hospital bed and go to that place with old women and children. Die in battle....go to Valhalla.
Disagree wholeheartedly. Take profits when you hit your targets that you set when you entered your trades.
Honoring a target would imply you have a target when you place your trade (mine would be $6.65 for CNBX) that your target is precise and can't be improved after observing more action, and it violates the maxim, "let your winners run". For example you might, and I've watched you do this, buy at the bottom of a range with a target at the top of the range. But if it breaks out of the range, why would you sell? You wouldn't; you have better information then when you placed the trade. I posted a chart with 15-minute sticks. What do you see? I see no reason to sell yet and the trend is our friend. When a trade goes against you, then yeah, don't let a swing trade turn into a freaking 2 year buy-and- hold ordeal that beats on your karma every day until you finally give in and recognize your mistake. Honor your stops by all means. You fckd up, kill it and move on. You can buy it back again even at a higher price, but with improved confidence and perhaps lower risk. Oh, and about those capital gains JohnMshort. Forget it. You have to hold for over a year to get long-term capital gains treatment and unless you're making major ching, it doesn't matter. If your account is an IRA then it is totally meaningless. Just make as much as you can as fast as you can and then pay your darned taxes.
Just remember, a stock that skyrockets like that can shoot back down twice as fast. Don't feel bad lucking up some profits here and there. Congrats though, we all love when we get lucky on one like this!
