Remember the beautiful trend I mentioned a few posts ago for ITP? (See here) I bought it at $8. It continued on up to around $9. Being a good little trader, I increased the stop as it rose. Today, it seemed like the bottom fell out and it plumeted. It opened at a dismal $8.30 and then dove down to a low of $7.15 before bouncing back to just over $8. It hit my stop as it went and I sold it at $8.23.
So, didn't make a lot on that trade. 2.875% But I only owned it for 45 days, so annualized, that ends up as 23.3%. Not bad.
Having a stop was invaluable in this case because I was out most of the day and wouldn't have been able to manually sell it even if I had known what was happening. Found out about it at the end of the trading day when I got back home.
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