Comments on: She’s Up… She’s Down! Amazon is out to Get You http://blog.afraidtotrade.com/shes-up-shes-down-amazon-is-out-to-get-you/ Helping traders overcome fears and emotions in trading Thu, 09 Feb 2012 14:53:15 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Corey Rosenbloom http://blog.afraidtotrade.com/shes-up-shes-down-amazon-is-out-to-get-you/comment-page-1/#comment-1852 Corey Rosenbloom Thu, 25 Oct 2007 16:23:32 +0000 http://blog.afraidtotrade.com/shes-up-shes-down-amazon-is-out-to-get-you/#comment-1852 Ben, Absolutely. Amazon has been a darling of traders and investors alike, but you nailed it. "Trends End in Euphoria". I cannot recall easily such rampant up gaps and runs, and then immediately a down gap and run. Gaps of that magnitude are relatively rare, but to have two consecutive days. Gosh. Even wild Google looks more tame - from a gap perspective - than Amazon recently. Apple would probably be safer than them both. If traders just can't hold back, trade intraday, but be very careful with Amazon from a swing trading perspective. It's very difficult to minimize risk with a stock so volatile, and - with swing trading - one gap of this magnitude can destroy profits for weeks (or, it can create profits that will last weeks, depending on which side you're on). To me, it's better to 'build wealth slowly' and stick with more 'down to earth' securities. Thanks for the comment! Ben,

Absolutely. Amazon has been a darling of traders and investors alike, but you nailed it. “Trends End in Euphoria”. I cannot recall easily such rampant up gaps and runs, and then immediately a down gap and run. Gaps of that magnitude are relatively rare, but to have two consecutive days. Gosh.

Even wild Google looks more tame – from a gap perspective – than Amazon recently. Apple would probably be safer than them both.

If traders just can’t hold back, trade intraday, but be very careful with Amazon from a swing trading perspective. It’s very difficult to minimize risk with a stock so volatile, and – with swing trading – one gap of this magnitude can destroy profits for weeks (or, it can create profits that will last weeks, depending on which side you’re on). To me, it’s better to ‘build wealth slowly’ and stick with more ‘down to earth’ securities.

Thanks for the comment!

]]> By: Ben Bittrolff http://blog.afraidtotrade.com/shes-up-shes-down-amazon-is-out-to-get-you/comment-page-1/#comment-1850 Ben Bittrolff Thu, 25 Oct 2007 14:37:25 +0000 http://blog.afraidtotrade.com/shes-up-shes-down-amazon-is-out-to-get-you/#comment-1850 This kind of epic tug of war screams indecision. This kind of wild volatility too is highly suspect. When I come across this sort of behavior in a stock, in my experience, it is a reliable indicator of a significant top. Sometime they take weeks and months to form. I wouldn't touch AMZN, long or short, with a 10 foot pole. You said it yourself, go for the easy pickings... TheFinancialNinja This kind of epic tug of war screams indecision. This kind of wild volatility too is highly suspect. When I come across this sort of behavior in a stock, in my experience, it is a reliable indicator of a significant top. Sometime they take weeks and months to form.

I wouldn’t touch AMZN, long or short, with a 10 foot pole. You said it yourself, go for the easy pickings…

TheFinancialNinja

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