This stock was attractive to me as it was near it’s historical high at $4.73. When stocks trade around such all time highs, they either face resistance and turn down or, run away after it breaks the historical price. I bought the counter in hoping for the latter. It did suffer profit taking along the way but I determined that $4.36 is an important support as it was a previous high in Dec last year. Hence, I was willing to risk this amount and set a stop loss at $4.35, a cent lower than the support. The price tested the resistance on 21 Mar and came down everyday ever since. My stop loss was finally triggered. The only good thing is that everything was within the plan.
Bought 10,000 shares at $4.612 on 11 Mar 10.
Sold 10,000 shares at $4.350 on 12 Apr 10.
Commission = HK$350
Loss = -HK$2970 (-S$533.21)
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