1. Always buy on support, and sell on resistance. We support break, it become resistance, sell the long position right below the support. We resistance break, it become support, cover short position right above resistance level.
2. Always clear about resistance and support, trend line. When trend is up, short should be fast, when trend is down, catch rebound should be fast. Because counter trend has more risk than follow trend.
3. Average down at the next support level is wrong. You can average down right below the support line for long position to prevent being shaken out, give yourself a second chance. But that is it! Then set the stop close the second entry place to cut loss short.
4. Follow the trend, Follow the trend!!!
5. Where is support? Previous lows that triggered rebound, previous volume congestion area, lower band trend line. What is resistance, previous high that trigger the reversal, previous volume congestion area, upper trend line.
6. Intermarket analysis. Use sector and SPY, DOW to check the individual stock's strength. Make sure your stock pick is stronger in the trend then the sector and whole market. Use BOND (TLT) to check money flow. When TLT suddenly go up, means money flow out of stock and goes to bond.
7. Should check other market strength indicator, such as AD, VIX, etc...
So many things. Look at the chart, see how many mistake you made, See what you did wrong and what you did right. Most important, after bought TIE, you start wishful thinking, ignored previous plan, wishing is will go up. Especially today, 6.95 is touched twice, give you the opportunity to cut the loss by selling on resistance, but you just hoping it will break the resistance and go up! Second time, a double top is about to form, so cut along the way when it is down, that is your last chance!!!
Alright, remember above words, those are not inconsistent. Instead, those words you know since you started learning stock for the last 2 month. But today you still failed to use what you learnt when you play the stock. No wishful thinking, ignore other people's opinion, just follow your own plan, your own judgement. Right or wrong, you will have a feeling!
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