and so it closes just..., page-15

oneday123...

Nothing wrong with stop-loss strategies, nor with being stopped out.

Any disciplined trader should be able to tell similar tales of being stopped out only to see the stock recover after their sale...god knows, it has happened to me often enough.

The secret is to quickly assess the situation once it has happened and rectify the error in order to reduce any damage...typically, in such circumstances traders tend to wait far too long before re-entering, hoping that the price may come back down to their sell price.

Had TOX been any other stock, I too may have been stopped out today, but TOX is one of my portfolio's largest positions and as such, I have a bit of a feel for it.

As a result, I was buying at every opportunity today...in fact, I couldn't believe my luck!

There simply was no reason for today's sell-off...end of story. I have previously suggested what may or may not have transpired, but won't speculate any further because I simply don't know.

It certainly was interesting though.

I remember a similar scenario in NDO...funny enough, at about the same levels. At that time, NDO was suddenly sold down from about 4.6 to 3.6c in a quick burst of selling, before it too staged a similar recovery throughout the day. By memeory, I think this day signalled the start of a major upwards move in the share price.

Every day in the market is a learning day...today we should have learnt that one should never, never set automatic stop-loss orders in speculative stocks...have a stop-loss strategy in place by all means, but limit the "automatic" stuff to the investment grade stocks.

From my experience, such days are usually followed by a major breakout of the stock...I am sure today will eventually be viewed as a major turning point also.

I wouldn't be surprised to see TOX above 5c by the end of the week.

Cheers!