It's time to make some of that money back.
Bullish Engulfing Reversal Pin Bar
We have a bullish engulfing reversal pin bar candlestick at all-time lows. This is a sign of a potential rebound. Single candlesticks don't get much more bullish than this. But this is AMC we are talking about, so we need to see a tiny bit more follow-through before this bullish signal receives any confirmation.
This might be a good swing trade opportunity. As you may have already seen with other penny stocks, sometimes their rebounds can be substantial.
Buy at Support and Sell at Resistance
Just remember to watch your near-term resistance levels. My illistration is a little sloppy, but you will get the idea. You can see the resistance levels in the chart below.
Remember the method. Buy at support and take some profit at resistance. Remember to set a stop loss. Let's get some of that money back from this "manipulated" stock.
This companies share price has been on a perpetual downtrend for a few years. So you can't assume this is the very bottom, and it seems more probable that there is more downside. Which makes it a good idea to watch the near-term technical levels and set a tight stop loss. Possibly a trailing stop loss.
Good Luck Trading
As always, I am not a financial professional, and this is not investment advice. Be careful and be patient. Dont anticipate the market. Rather, participate in the market. Don't invest money that you can't afford to lose. Give some of your investments time and know when to cut your losses.
Don't be greedy. Don't invest in anything you don't understand. Don't put all of your eggs in one basket. Don't listen to the hype. Don't fomo or panic into or out of trades. Do your own due diligence. And just follow the trends. A trend is your friend. Good luck trading.
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Trade the trends via technical, fundamental, and macro analysis. Day Trades, swing trades, and long-term investments.
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mizmo : can you please drop some knowledge on when to use a stop loss versus a trailing stop loss?
SpyderCall OP mizmo : Well, the way I see it, with a very volatile stock with very big swings, you might not want to use a trailing stop loss as you might get stopped out during one of the big swings down only to see another big swing up.
For names that don't have the wide volatile swings, it might be a better idea to use a trailing stop.
If you are the buy and hold type, then you might want a regular stop loss that doesn't move. This way, you will not lose more than you are willing to. And you dont need to worry about getting stopped out any time in the future from any spike in volatility.
Also, trailing stops are good for a swing trader that has too many positions to keep up with. It can be difficult moving your stop losses for a ton of positions.
mizmo SpyderCall OP : very well done on the explanation. I appreciate that a lot
5060 : why use stop losses if they try to trigger them. moomoo clown. Just like loaning your shares to suppress the stock you own.
SpyderCall OP 5060 : What do you mean? Who is they? Market makers?
Just set a wider stop loss or something to avoid that. Or don't buy at the high or after a big run up. Buy at a dip or a relatively low price. Don't invest in garbage stonks that appear to be manipulated. I don't know why you are asking me this. You know what the purpose of a stop loss is, right?
A stop loss is a tool to keep your portfolio from taking losses after the price drops below a certain point. If you don't want to lose money by a stock dropping below a certain price, then you would set a stop loss. Or you could stare at your computer all day until the price action comes down to your "mental stop loss," and then you could sell to protect yourself from losses. Either way, it is the same concept.
SpyderCall OP 5060 : For example, if you bought PLTR right before earnings and set a stop loss a couple of dollars below your entry price, then after earnings, you would be up over 30%, and your stoploss would be below 17$. There would have been no chance for market makers to trigger your stop because PLTR absolutely ripped. You could have even set a 5% wide stop loss, and it still would not have been triggered. Not everything is a market makers conspiracy![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
SpyderCall OP mizmo : Absolutely
I am a part of the retail army like you ![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
We gotta stick together, ya know ![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
mizmo : what kind of trading account do you have? All of mine are set to three trades a day so I probably will probably be able to do this type of trading