Risk Management

My stock won’t move!

Written by Noah Hochman

What to do if your stock doesn’t move…

All of us engaged in day trading at some point in the day or week have entered a position that for all our strategy and planning, just sits there are barely moves in one direction or another. It is all too common in online trading to offer out the stocks that are not moving. It is natural get to get a bit impatient and try to get out of that position. Of course almost invariably as soon as I would get that rush of euphoria after someone would take my offer, that stock would then begin to move higher and higher and higher! With experience comes wisdom, unless there is a specific reason to exit that position, such as needing to free up some capital or noticing a possible change in the trend of the market, I will not do a thing with a stock that is in a very tight trading range. I will patiently continue on with my trading and see if that stock begins to act like it is preparing to break out of its range, if it moves higher I will probably look to get out, maybe in pieces and take some profit or start adding to my position if it makes higher highs and higher lows. If it breaks to the downside I will exit that position immediately and limit my losses. Remember that a key element in online trading is to know how much you are willing to risk in relation to where you think that stock will go.

Noah Hochman

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Noah Hochman

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