trading bible, page-3

hi padhai,

First, thanks for your lively appearance on the D/T thread. Don't usually read it until the evening but when you sprang up couldn't help but think your addition really brightens the tone.

Re NEVER BUY A FALLING STOCK - this one has always confused me. Yes, reckon it's broadly true but sometimes when a stock suddenly does a wild fall south, really sharp and steep on a chart, you can get a stupendous bounce. There were lots of examples of that last week. Maybe it depends on the situation, the stock and also, perhaps, knowledge of resistance/support levels.

If you buy a stock and realise that it's about to fall further you should use the TWO PERCENT RULE (as Gizard has called it) and get out as soon as possible.

all the best!
Cosmo