Experience trader opinion on a stock?

Question

hi i bought PSUN at 5.60 about 800 shares. i know about the news. but i am thinking take a chance and keep it for a ew days and maybe it will jumo a little and i will make couple o hundred $. please tell me should i keep it or sell it.

Answer 1

Pacific Sunwear didn't hit a new 52-Week low for nothing. Since the technical indicators for the stock are neutral and S&P gives PSUN a neutral 3 STARS (out of 5) hold ranking, it doesn't look good that the stock will rebound anytime soon. The company issued a weak outlook that resulted in a series of investment downgrades. That's never good news. If I were you, I'd cut my losses on any upside.

Answer 2

The chart looks horrible!!!!!!!!!.... even before the news!

Use a trailing stop to try to gain a few more dollars.... but when it stops you out...... just forget it.

Small suggestion;

Always have an exit plan before you buy a stock.  It frees you from making bad decisions under pressure...... Maybe a stop placed at the right place would have had you out on 8/19/2008.

If you're trading correctly... money management (stops, position sizing etc.). this loss should not be a big deal.  When trading stocks under $10.... the risk is very high for bad news.  So..... you buy many different companies & if one or two blow up... it's not a big deal.

Read some good books on investing & trading.  It will save you tons of money in the future.