08-20-10 DontTakeLosses Weekend Stock Market Recap and New Trading Plan

[DontTakeLosses]

ECA is in a pretty good downtrend. I used to trade it, but am uncomfortable with energy stocks now. If it were me, I woud ahve a stop loss in place. Once it broke support @ 29.26 from May, I don't know where the bottom is. I look for uptrending stocks that have pulled back and have bounced. So, I would avoid ECA, as it does not fit my desired profile. But I don't know what catalyst there might be to make it pop, I haven't done that homework.DontTakeLosses. PS: Not sure what "bought on tsx" means

[2zzftw]

@DontTakeLosses I'm in Canada so I bought eca on the toronto stock exchange (eca.to) I am a new trader and I don't day trade. Not yet anyway. I normally hold stocks for a couple weeks or even a month.

[DontTakeLosses]

@2zzftw I won't go underwater (loss) more than 2% to start a position. I set a stop there, take a small loss if need be; that's how I impose discipline on myself. Admit i was wrong to buy at that price, maybe try lower. You appear to be @ a 4.8% loss already on a stock that has gapped down 2 straight days. Maybe it rallies...maybe not. That's the point of this weekend video. We buy a bounce after a dip, but only in uptrending stocks. We then set a snug stop to start. The stop limits your loss.

[2zzftw]

@DontTakeLosses I haven't been using stops. I jumped the gun on eca. I sold my shares on tuesday. I didn't lose any money but I didn't really make any.

[2zzftw]

I bought encana at 29.10 on tsx. good?