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Thread: My first newb mistake....

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    I bought 100 shares of CNXT at 1.85 a few weeks back based on a Cramer recommendation. I figured this would be a good cheap stock to start with, since I'm fairly new to trading stocks.
    After watching it do nothing for weeks it finally started moving today. I currently trade with Scottrade which charges a $7 commission to buy and sell, so I figured the stock would have to go to at least 1.99 to really break even. After watching the stock go to 1.99 I tried to put in what I thought was a limit order to protect any profit I might have made.
    So I did a sell stop limit at 1.99, only to log back on a couples hours after and see that it SOLD at 1.99. So I have a few questions:

    1. Should I have used a trailing stop with preset points?
    2. How do you guys protect your profits?
    3. Does this also work in reverse to not extend losses?

  2. Default My first newb mistake....

    One question for you? Do you know where any of the major support/resistance areas are for CNXT? If the answer is no then just stop trading in real $$$ until you learn how to establish where support and resistance areas are. You can always practice at a trade simulator like the free site einvesting.com offers. You can't set proper stops or sell limits if you don't know where the support/resistance areas are, just that simple. Don't waste your time investing/trading unless you know or you will most certainly lose over time. Good luck to ya!

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    Cramer does not believe in stops, and whether it amounts to anything or not, I agree. You are going to kick yourself when you get stopped out on a slight retreat, then it goes on up without you. You should always use limit orders to buy or sell. On one stock,WLS, I put a buy limit a few dollars below and just let it ride , and it came in. Then I immediately put a sell limit up a few dollars, and it sold. I did this 3 times before it stopped working. Limit orders work, they usually get you in cheaper and get you out higher. Frustrating when you are missing a ride because your buy limit was too low, though.

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    Boo, thanks for taking the time to answer. Where would I find info on support and resistance? Any books you recommend?

    I may have be unclear in the question though. I was asking how to set points via my stock account to capitalize on profits. If I buy XXX @ $5 and it goes to $5.5, how do I ensure it doesnt go back to $5 and take the profits with it before I see it.

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    What a coinkidink. I just sold my CNXT today also at $2.11. Nice little profit from $1.88. I don't believe in stops, I watch the stock and sell using a mental stop loss. Otherwise you can get sold out on minor gyrations in the stock and kick yourself once the stock takes off.

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