BreakOut, Churning, Falling Over A Cliff, Cathing A Falling KNifePosted by on May 01, 1999 at 22:20:52: In Reply to: Re: Heavily Traded Closes UNCH posted by Chris on May 01, 1999 at 22:05:23:
Chris: Is there a 99.9% certainty-indicator a tape reader can tell that the stock is about to breakout into a new high instead of falling over a cliff? 3/4 of the time I get it right, like when the stock is churning and doesn't seem to get any higher and I lock in my 20%-30% profit, selling almost at the top. But then I've also caught a falling knife after I watched a stock I thought I knew too well (made money on it each timein the past) churned then plummeted (caught it) thinking for a snap right back, but instead it headed straight down, the only way to get out of it is take a heavy loss for the error. So now I trade it between the narrow spread it moves weekly while holding my original caught-a-falling knife scenario. Just when I thought I have learned never to catch a falling knife again (after one horrible experience when I first started 3 years ago). Well, I guess I had forgotten the lesson, paying for it now. Sometimes I get emotional and too quick to pull the trigger when patience would have been the right strategy. Thank you.
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