After today's move, I am beginning to hate $ALT. Not that it runs contrary to my expectation. In fact, it is still moving within my channel's range.
I just find it difficult to identify the source of my disgust. Perhaps, it has something to do with the players of this stock.
Early this morning, just less than an hour after the opening of the PSE, most orders in the sell side are so small. Any trader can easily sweep them all. Imagine a sell order of just 1,000 shares from 2.69 to 2.74. This kind of line of orders shows that the number of shares sellers want to dispose is so small. And so those who buy into this trap would just take those available shares only to see later that those shares get bigger and never run out. And so during the closing time of the market, traders realize that the absence of sellers during the early hour of trading is just a disguise. In fact, there are more sellers than buyers even at a lower price. Such realization would cause doubts about the stock and would breed more selling. As a result, $ALT ended the day with bears gaining the upperhand.
The above story is just a product of my imagination. It is simply reading too much into the price action of the stock. It is an example of emotion interfering into trading. Overcoming such emotion is a must if a trader wants to succeed in this field. The tendency if you fail to overcome such emotion is that you will hate the stock and you will never look back regardless of the performance of the stock. It happened to me in the case of both $PPC and $TUGS. I was an early holder of these stocks for several months and gave up later and never looked back. Only to see later that they started doubling in price but I no longer mind for I had had enough with those stocks.
Will such disgust happen again in $ALT?
I just find it difficult to identify the source of my disgust. Perhaps, it has something to do with the players of this stock.
Early this morning, just less than an hour after the opening of the PSE, most orders in the sell side are so small. Any trader can easily sweep them all. Imagine a sell order of just 1,000 shares from 2.69 to 2.74. This kind of line of orders shows that the number of shares sellers want to dispose is so small. And so those who buy into this trap would just take those available shares only to see later that those shares get bigger and never run out. And so during the closing time of the market, traders realize that the absence of sellers during the early hour of trading is just a disguise. In fact, there are more sellers than buyers even at a lower price. Such realization would cause doubts about the stock and would breed more selling. As a result, $ALT ended the day with bears gaining the upperhand.
The above story is just a product of my imagination. It is simply reading too much into the price action of the stock. It is an example of emotion interfering into trading. Overcoming such emotion is a must if a trader wants to succeed in this field. The tendency if you fail to overcome such emotion is that you will hate the stock and you will never look back regardless of the performance of the stock. It happened to me in the case of both $PPC and $TUGS. I was an early holder of these stocks for several months and gave up later and never looked back. Only to see later that they started doubling in price but I no longer mind for I had had enough with those stocks.
Will such disgust happen again in $ALT?
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