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Ask Tony
Thursday, June 7 th, 2007
by Tony Golan
Chief Technical Analyst
StockProfit.com™
Question:
Tony,
I need help. I don't know much about stock and have lost almost $2,000 of my $10,000 in failed attempts. I have DNDN, CHYS, and DHNA. Can you please tell me what to do? Thanks.
Karen
 Zoom
Tony answers:
Karen, let's look at these stocks one at a time. DNDN is consolidating sideways after it had a big gap-up following a big gap-down following g a big rally which followed a big gap-up. This stock gaps all over the place and is obviously very news-driven. There is no good or easy way to trade this stock (other than daytrade) without subjecting yourself to what sounds like more risk than you can stomach. I'd say sell it.
Zoom
CHYS is in a long-term down-trend. As you can see from the chart above, this stock used to trade at 10 and 11 not too long ago, today down to 1.80. CHYS is making lower highs and lower lows below the 200-day moving average, which means it's in a long-term down-trend. How long can it go? Who knows. If somebody died and left me some CHYS stock, I'd sell it after a glance at this chart.
Zoom
DHNA hasn't been trading long enough, at least under this symbol, to have a 200-day moving average or RSD, but the stock is in a down-trend as well, making lower highs and lower lows. Not too long ago, it was trading around 3.50. Now, under DHNA is under a buck. Using the same test, if someone died and left me some DHNA stock, I'd sell it after looking at this chart, too.
Don't get discouraged. Go back and educate yourself about stocks and about technical analysis. Figure out what you did wrong on these stocks, and what mistakes you won't repeat next time. Getting good at this requires the perseverance and willingness to learn from mistakes made. Let me know if I can help further.
-Tony.
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Tony Golan
Chief Technical Analyst
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