This was my 2nd attempt to buy Longtop Financial (LFT) and the 2nd time I was stopped out in a month. I don't think the level of volatility in this name fits with my style - it is better suited for a daytrader or someone who does not employ stops.

We bought this yesterday @ $27.25 - I placed that limit order when the stock was near $32 as that price point was near the 50 day moving average. I was surprised to see it fill yesterday but LFT imploded. As has been my game plan for the past 12 weeks I take many small losses, and don't let things get out of hand - we were punched out this morning at $26.44; about a 3% loss. The stake was only about 2%.... this wasn't a gung ho long :)

id=BLOGGER_PHOTO_ID_5371324390494159842While I like this name the volatility of the day to day moves might not fit into our gameplan. I need less volatile merchandise that somewhat adheres to charts. Knowing Longtop it might rally 15% tomorrow after breaking support today - that is fine for daytraders but doesn't work for us.

No position