BHIivb16QnWevSIeV1UqOEn8DWU Low Risk High Reward Penny Stock Charts: The importance of buying and selling breakouts and resistances-Refining your plan



Wednesday, August 14, 2013

The importance of buying and selling breakouts and resistances-Refining your plan

Good morning Traders,

This blog is not like most others.  This is not one of those get rich quick schemes where I pump stocks and sell you my shares leaving you with my "baggage".  I simply watch stock charts in the hopes of catching low priced stocks for a short trade.  The only stock I have purchased that is on this blog is PLUG:

I purchased shares at the beginning of the breakout above $.40 (at .4047) and sold about a week later at .5218.  This represents a gain of about 29% in a week.  This return is better than any index this year.

The opposite holds true with LPR:

I had shown the breakout and resistance levels as highlighted above in the hopes of catching some momo like PLUG.  The plan was to pick up shares on a breakout above .60.  While I watched for the stock to surpass this level it took a nose dive. It is now trending lower along the original downtrend line:

This is why we stick to the facts of our trading plan not our feelings.  By trading the facts and not my feelings I narrowly avoided a 50% haircut.  Please do not mistake a chart setup for a buy endorsement from this site.
Now on to the good stuff:
Two plays from the past posts are still in play.


BRD announced earnings this week and the market did not kick her to the curb.  The ascending triangle is still in play and is worth a watch over the next few sessions.


Announced earnings as well this week and its current chart looks good in the near and medium term.

We've had quite a few readers over the weeks.  I would welcome any feedback, comments, other trading setups/lessons, or simply donate a cup of coffee below.

Thanks for reading and have a great weekend,


No comments:

Post a Comment