I'm still holding onto Biopack Environmental (BPAC), and I'm still cheating.
I'm not using the Slow Stochastic technical indicator. I'm using that ol' buy and hold method now.
I have to admit, it's certainly not as fun to just sit there and hold onto something. Trading is really pretty fun.
However, with this one, I'm learning that it's probably the right thing to do.
I don't know if this is true, only for my broker--Fidelity, but this stock being on the OTC (opposed to the NYSE, NASDAQ, AMEX, etc.) means that I cannot set stop losses or stop limits.
According to the chart, I would have bought more of this stock at $0.20/share, and I would have sold it at $0.20/share.
Even if I timed it perfectly on my own, this would not trade that easily.
Today's Lowest Price: $0.18/share
Today's Highest Price: $0.20/share
Both buy and sell signal flagged today.
However, the listed prices are not always what you get to "use." For instance, you would have like to buy this at $0.18/share, but the Ask (Buy) price was $0.21/share.
When the listed price was $0.20/share, the Bid (Sell) price was $0.18/share.
Despite what the technical chart told me, I wasn't going to make money with this stock today.
I think there is a lot of potential to use the Slow Stochastic technical indicator effectively, but I don't think that it's all that effective on a penny stock, especially one that's trading all too close to a penny.
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