Yesterday's clarification was on was derivatives, today's on stop losses. My stop loss on Fridays short is .555 cents, so no educated guesses needed about anything. Hit's that I'm out, predetermined before the trade is placed.
On the balance of probabilities and with the evidence in front of me as at Friday 4:00pm I have a feeling that MNS recent price rise was a counter rally and represented a shorting opportunity and that MNS price could decline next week, and the existing downtrend resume which may make my trading position profitable.
I also have an exit price, and a risk/reward calculation on that price. I know and trust my trading system so the show goes on with no sleepless nights. I don't have to trust management, or hope for finance, or hope the company makes batteries on time or worry about upcoming CR's or be concerned about the balance sheet or who's on or leaving the board.
Trade the trend and manage risk and you can't go wrong. React to what is in front of you and act accordingly in a totally non-emotive way. Did you pick up the unusual behaviour in the MNS chart last week?
"Technical analysis reflects the the vote of the entire marketplace, and does, therefore pick up unusual behaviour. By definition, anything that creates a new chart pattern is something unusual" - Bruce Kovner, Market Wizards.
MNS Price at posting:
46.5¢ Sentiment: Sell Disclosure: Not Held
(20min delay)