Monday, May 11, 2026

NET stock | Earnings rebound and then dipped again | 5 min charts

  1. When NET earning came out, NET stock crashed in the second day, it is important to think about worst scenario - buying dip, it may dip another 5 to 8% 
  2. NET stock crashed 19%, but it continued to crash to 25%. It is not a good trade to buy dip around 19%, there were still 7% more to drop. 
  3. So the position size should be a fit for a trial, try small position first - like 20 shares
  4. Set the stop loss using bracker order, and also set maximum loss in the one day - 1000 US dollars
  5. Bracket order - stop loss 1.0/ share, 20 shares will be $20 US dollars
  6. If the stop loss hits, then try to read the chart and then try second time, but the position size should be cut in half
  7. Also it is better to read 30 min chart, make sure that 30 min bar is not a trend bar, and 2nd and 3rd bar should be trend bar, avoid buying dip in those first three 30 min bars. They are trend bars. 
  8. It is better to try 4th bar 30 min chart
  9. ......
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30 min chart




5 min chart





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