Friday, August 26, 2005

A beautiful girl; RITA

Let's look at one of my mistakes to learn something here ;)

I took a position in RITA at 4,08 on August the 1st. I thought I was seeing the Candlestick pattern called Three Rising Methods. But it failed. My stop loss should have been the base of the white candle of the first day of this pattern, but I had a hard time leaving this girl out in the cold.
I decided to hold the stock as long as it holds the ascending trendline (see chart below).
As long as it closes above this ascending trendline, the stock is still bullish.

This trading plan resulted in me still holding this girl, while it's at a loss of almost 15%. Money I could have spend on other (better) stocks, is now sitting there with this girl.
But one lessons I previously learned the hard way (more about that later) is Always develope a trading plan and stick to it and Don't sell a stock out of impatience

RITA has got recently some good news out, so it isn't all that bad. But fact is I'm stuck here with this girl I can't abbandon without a good reason, should have had a different trading plan and should have sticked to that one ;)


At 12:37 PM, Anonymous Anonymous said...

appaud for the blog
added on bookmarks


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