Summary Free Membership     Add to watchlist     Email to friendSee our recent article: How do I manage my trading risk?(Date Report Was Created: 22-Dec-2011) Tellabs Inc. (TLAB)TechnologyLast: 3.995  (+0.17 pts, 4.58%)  Open: 3.87  High: 4.05  low: 3.83  Communication Equipment Quick Summary The Stock is in Bearish Phase. The sellers have entered the market and pushing the price down. The Bearish Phase occurs when sellers have entered the market. The stock has retraced 15.9% from its recent high price of 4.75 which occurred on 24-Oct-2011. The current price is below the 50 day moving average of 4.15. Sustained move below the average could put the recent uptrend in jeapordy. The closest support can be found at 3.9. The
Louis Vuitton Outlet closest resistance can be found at 4.16. See Support/Resistance below for details. How to trade Tellabs Inc.(TLAB)? Breakout Trade: A close above the resistance level of 4.16 could trigger a buy signal. Confirmation would occur when the low of the day would be above 4.16. Retracement Trade: Consider sell/shorting when the price retraces around 4.16 if you are aggressive. Alternatively, a conservative sell would be around 4.42. Risk Management: Consider risking somewhere between 0.2325(5.82%) and 0.3875(9.7%) points on your position. Risk management is an important part of trading. Our risk management strategy is based on the average daily range of the stock. Sign up for free membership to view complete report. (Available only for short time) Look up analysis for ANOTHER stock Sign up for complete report Free Membership     Add to watchlist     Email to friend To view complete institutional style report and recommendation on Tellabs Inc.(TLAB), pleaseSign up for free membership!!! If you have already registered, login now, to view the complete report. We evaluate over 4000 stocks everyday. Read our analysis for TLAB and other stocks daily.Why not become a member ?For now, it is FREE!!! Technicals Free Membership     Add to watchlist     Email to friend Market Phase:? Bearish This indicator compares long term trend with short term price action to explain the current phase of the market. According to the indicator, the stock of Tellabs Inc. is in the Bearish Phase. This indicates that the stock is in a downtrend. The sellers are pushing TLAB down. Short Term Trend:     (-5) The short term trend indicator only looks at 10 to 20 day timeframe to determine the current trend. Tellabs Inc.(TLAB) is currently mildly bearish. 3 Day Money Flow:     (-9) The money flowing for last 3 days in TLAB has been strongly bearish. This indicator summarizes the price and volume activity over last 3 days. It is a very short term indicator. Snapshot Free Membership     Add to watchlist     Email to friendPhase:?Bearish  Relative Strength:    (+7) EPS Growth(yoy): Unavailable   (-0)  Fundamental:    (-1)  To view complete report on Tellabs Inc.(TLAB)please sign up for free.If you have already registered, login now to view the complete report. askStockGuru TIPS Free Membership     Add to watchlist     Email to friendIf you are investing in stock, or if you buy stocks, trade stock, or are into stock investing, read this section to improve your stock trading skills. Here is the question that was asked by one of the users: >Also I am having trouble to know also when to sell a stock, how can I determine the sell point of a stock? I am >using stop losses to control my downside but I am not sure how I can determine the potential upside of a stock. >Say I but a stock at 100, put a stop loss in at 95. If the stock goes to 105, 108, 150, this is where I am >having trouble getting my head around. To know what is a reasonable estimation of the upside of the stock. >Sometimes I am stopping out too quickly (novice mistakes, but I am learning). Lets tackle with the trouble of knowing when to sell first. Knowing when to sell a stock is difficult, and not always easy. I am glad to find out that you are using stop loss to control the downside. First, let us look at the scenario that the stock went from 100 to 105. Just make math easy, let us say that risk management is 5 points. The initial stop loss at 95 makes sense. But now the stock has moved to 105, why not move your stop to 100 or 98 (in that range). This way you are cutting down the risk of your existing trade. If the stock moves to 120, then have a stop at 115 or thereabouts. This way you lock in the profits. Suppose the stock at 115 was stopped out. You can always reevaluate you position and enter again. The reason for having a mental stop loss or an actual stop loss is to have a discipline. If we were future-knowing time travelers then we would not need such discipline. But we are humble traders who realize that we are prone to making mistakes, thus a stop loss is needed. So if the stock moves up, move the stop up with it. The other comment that really caught my eye was that I am stopped out too quickly - a novice mistake. This is a novice mistake or not so novice mistake. In any trading, you as a trader are taking on some risk. Sometimes, you take too little and sometimes you take too much. That is the nature of trading. And any trader, someone trading for years or someone new, they have to live with it. The question remains, if it is not perfect, why do we need the discipline. Here is why: If a 100 stock declines 5%, so goes to 95, requires a gain of 5.26% to recover. If a 100 stock declines 10%, so goes to 90, requires a gain of 11.11% to recover. If a 100 stock declines 20%, so goes to 80, requires a gain of 25% to recover. If a 100 stock declines 30%, so goes to 70, requires a gain of 42.86% to recover. If a 100 stock declines 50%, so goes to 50, requires a gain of 100% to recover. As you can see the relationship, as the stock declines, the recovery takes higher percentage gain than the percentage loss. So a 10% decline, has a 1.11%(11.11-10.00) penalty.
Louis Vuitton Decline of 20%, has 5%(25-20) penalty. As the losses grows, the percent gain needed to recover goes higher. So it is better to make a mistake earlier then later.