daytrades july 15 afternoon, page-33

To expand on earlier comments about trading volatility when a share delivers "bad news", buying on the the first trading day is always high risk, even if I got away with it today. In fact, I'd advise anyone new to trading to have as one of their trading rules: "Do not buy a share on the day it releases bad news" because without tight stop-loss discipline you can lose more money this way than you can imagine.

Day 2 is generally calmer, with a better probability of success provided you have the patience to wait for weakness and don't get suckered into chasing false rallies. As a short-term trader I never buy the open in this situation - if a share runs without me I move on to other trades.

Day 3 offers a good probability of a genuine reversal, even if it's only a dead cat bounce, so an overnight hold is possible. Again I'll only buy weakness to minimise the downside if it keeps falling.

I'll certainly watch CEO for potential trades on Monday and Tuesday but won't consider holding overnight until it puts in a positive session. All this is written purely from a day trader's perspective - investors with more knowledge and a longer view may see longer-term value at these levels.