On Monday after the 200+ rally in the Dow last friday, Genting SP surged to a day high of 1.34 . I sold 2/3 of my Genting( bought earlier at 1.29 -see last post ) soon after open at almost day high of 1.335 before it came crashing down. I'll explain my logic for my partial sale later, a risk management technique I used quite often in my trades.
Yesterday Genting continued its crash , it hit a strong support at 1.285 before bouncing to close at 1.305 but it was still a weak close ... as a consequence , today it suffered another breakdown and came crashing down to 1.26 in yet another big selldown
It appears Genting is quite susceptible to shakedowns, so this stock may not be for the faint hearted..
Yesterday morning , a reader by name of Connie asked me in the comments section of the last post about the status of the Genting 'rally' as she was still holding on to her Genting shares , apparently disconcerted by the sell down as do, i believe, some other readers as well - still holding onto their genting shares .
When I looked at the chart , the 'expected' breakout did occur on Monday morning but it closed badly which invalidated the breakout which then lead to a strong reaction south...
But all the above is hindsight reasoning .. not of any use to a real trader seeking to protect his profits before & not after a reaction has occurred.
Question is how do we flexibly handle such situations to ensure we keep most of our profits & still retain some flexibility to ride further rallies , if any ? ..
My replies to Connie yesterday in comments section of last post-(click here or read below ) contains a little recipe, not perfect but i find quite useful in my handling of such situations .. especially useful when coinciding with a short-term market swing top like Monday .. hopefully you find it useful as well in future trades.
for those who saw their paper profits turned to losses after sticking faithfully to a fixed price goal without reacting to dynamic market conditions , I can only offer my apologies for not advising earlier & hope a precious lesson can be drawn from this experience.