ERG - Bonkers.

Bonk, You reckon ERG is going to 70c.

You might be right but you would not trade without stop loss on such a high risk stock.
If I believed the same, (have no view at moment ERG to be is volume day trade) I would employ the following;

1) Work out volume based support levels.
(You seem to have done this.)
2) Buy on those support levels with tight stop loss.
3) If trade moves against you exercise stop loss and re analyse support level. Buy when this support level is triggered.
4) If the trade moves with you employ a rolling stop loss. ie. If you brought at 30c (with stop at 28.5c) at stock is doing what you predicted, say now at 40c your new stop is say 37c.
5) If rolling stop is triggered sell and re analyse support level and do whole thing again.

This is fairly good method the only problem is you have to be fairly unemotional which is easier said than done.

If it all gets to confusing (which it can) then just say 'OK ERG going to 70c, the suckers high risk so therefore I will invest only a very small proportion of my portfolio.'
GLORY or TAX WRITEOFF!!!!!

Rob.



Rob.