ARTL has a nice long base, but the recent downtrend line is only 14-16 months long. I would play this like a long sideways channel and buy when it pops over 8 which it has not done for several years.
The biggest problem for all of us is when to take profits. The rule I use, and you can look at chart after chart to verify this, is the price will usually go down as fast as it went up. This is especially true of fast risers say 3-4 weeks or less to go up 200-400%. I've learned to dump them a day or two after the peak. Patience is necessary for most stocks while waiting for the trend to break upward, but vigilence is key after you are in the market. When people hang on too long to an issue I think its because they have some sort of an attachment to it like you would to a favorite book, or car, or article of clothing. Consider the farmer who raises livestock for market and human consumption. His job would be impossible if he developed attachments to his animals and did not consider the cows and pigs he raises to be any different that the corn and beans he also raises for market.
Like the gangster said, "Its just bidness, nutin' poisonal".
Don't ignore paper trading to improve your comfort level and your skills with the TW method.
One of the biggest mistake areas for me was placing orders so as to gain money instead of losing it. I always use limit orders to buy and sell. I my opinion the skill of placing orders was overlooked in Ted's book. Today I use sell-stop, limit, all-or-none (AON), good-til-canceled (GTC) to exit a position to protect my profits. This is what they call an "advanced" order and each word has a specific purpose. During distribution the volumes are so high and the price fluctuates so much that this type of exit order has always worked for me.
As in everything else, experience counts.
Good luck, ma'am.
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I hear reference to channels alot and I think it means "when a price stays within a tight range" however what is that range? On a long range charts a fluctuation of 2-5 dollars can look like a very small range but when you look closer it looks like mountains and valleys! Got any ideas as to how I can determine if it's indeed a channel action?
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In the words of Ken Roberts, "If it looks like a sideways channel, then it is."
I prefer bigcharts.com 10 year view 1 month increments. Minimum 2 years +/- $1.50 of the mean.
Example:
For three years a stock is $3 per share as an average with resistance at $4.50 and support at $1.50. Tested 2-3 times at each extreme builds confidence that when that stock hits $5 it will keep rising.
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My only question on selling stock is when volume is low and the price is moving up. When is the peak? I have not sold any stock yet, but how can the manipulators sell off their stock if volume is not high?
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Hello Micheal,browse down to volume indicator by Lester.This will explain the volume to you Then look on page 91 of the TW book and TW will show you exactly where your sell point will be.Page 107 will help also you on the volume.
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Linda, I stand corrected, the resistance of $8.00is correct.You have to look all the way back to 1992 on the base. I knew this when i looked at the chart,but when i looked at Big Charts i saw a down trend starting in 1998.Thats where i got the $5.50.Drawing an uptrend line i always know where to sell as on page 91 TW book.
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Hello Ben. The limit order is the most basic of orders and simply specifies that you wish to purchase an amount of stock at a specific price.
For Example: Buy 1000 shares of abc at $1.50/shr. or better GTC.
Your brokerage firm would only purchase the shares for you if they could be bought for $1.50 each or LESS. GTC is "Good Till Cancelled" and unless you actually cancel the order, it will be ongoing for months until it is filled.
SPECIAL TERMS can be applied to your order. For example, do you wish to only purchase the shares only if you can get them all? You would then attach the term "ALL OR NONE". You may wish to buy 1000 shares, but would settle for even just 500 at that price- You would let your broker know that.
Let me know if you have any further questions.
Lester.
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