| Exits:(ejr39)
As for when to sell: KNOW
YOUR EXIT BEFORE ENTERING THE TRADE!! Each trader/investor
has to choose their own comfort
level.. . . . In general, Why are you entering the trade?
. . . If you enter a trade using MACD13.34.89
crossing above it's 10 dma than sell when MACD8.17.9 crosses down
through it's 10
dma.
. . . If you are a ma trend trader, exit
when the short term ma crosses down through it's companion ma
(i.e. 5 dma crosses down
through 13 dma).
. . . If you enter a trade based on DNS,
try using the parabolic SAR for an exit signal.
. . . If you trade for a 10% profit, sell
when you have the profit.
. . . If you trade another's recommendation,
what is the individual's exit strategy?
Personally, I use the PCFs and EasyScans
to keep the selection process mechanical and my exit strategies
are determined by the
stronger PCF readings. NEVER, NEVER
hold a loosing trade. Again choose your own comfort level - as
a rule of thumb, exit the trade
if the loss is more than 8%.
* * * KNOW YOUR EXIT BEFORE ENTERING THE
TRADE. * * *
Exits:(cpratsch)
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| If you use
stoc7.3 and RSI3.3 on the way up why don't you use the same indicators
on their way down? Whenever they turn
down--or whenever their MA is going OVER their signal line--or
whenever stoc7.3 and/or RSI3.3 go through the middle line-sell---
or, whenever price goes down through YOUR
selected MA (I use MA 20 as absolute boundary). Or you set a price
percentage
limit. Or, if you are a longer-than-a-few-days-holder, use MACD
12-26-9 (or a shorter one) or RSI21.5--as long as the RSI 21.5
indicator signals stay above the middle line you are OK, because
RSI reflects U/D (average up prices over average down prices),
and at the middle line they are equal = no change in up or down
movements over the length of your time window, here 21 market
days= about 1 month. Or, sell as soon as price dips. But don't
cry if price goes right back up again.
Exits:(howie99)
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| I have a rule
for anything that can happen, when something happens that I don't
have a rule for I Sell..My rule for a stock that
does not move for a period of 5 days is sell..I find that if I
have to think about what to do I'm in trouble..Mechanical is the
only
way to be, for me.
Exits:(jcmorrill)
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| Ken, a stop
strategy you may want to think about is as follows:
. . . Figure 2% of total portfolio, divide
by number of positions you are holding, use this number to determine
first stop by
subtracting the number from cost of position and dividing by number
of shares. For example your portfolio is worth $10,000, 2%
(I know it doesn't sound like much) is $200. Your stock pick is
12.50 per share and you buy 100 shrs, cost $1250 plus commission
(times 2 if you want to consider the round trip cost). (1250 +30)
- 200 = 1080, 1080 / 100 = $10.80, $10.80 (or 10 3/4 if you like
fractions better) is where you set first
stop. Analyze your position each day, when stock goes up, figure
the average of the low
for the day and the prior stop, that will be your stop for the
next day. If stock doesn't go up do not adjust stop. You can ride
a
stock to very near its peak with this method and if you get stoped
out right away you have only lost 2% of portfolio giving you
several chances to get it right. As soon as you are 'in the money'
in a position you can use this method again in another trade.
Exits:(jnorfy)
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| From Clearstation:
(paraphrased) If a stock fails to move on Stoc26.9 going from
below 20 to above 80, exit the position. I
realize that you are not necessarily using stoc26.9, but the same
holds true. If you buy a stock based on some indicator, new,
fundy, etc; and it doesn't materialize, get out and don't look
back. Put the capital to work somewhere else. The stock may shoot
up, it may tank. If it rises, get in the next time your signals
say buy. It is always easier to get back in to a stock going (albeit
later) your way, then get out (or hold) one that went against
you.
Exits:(cpratsch)
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| I just saw
a description of a neat MA trick:
. . . Place the moving averages (MA) 4-9-18
on an upper chart with price;
. . . 1) when MA 4 AND 9 both cross MA18
upwards - buy;
. . . 2) when MA 4 crosses MA 9 downward-sell.
The reason this is good is, of course,
that this gives a little bit longer after a price upturn to consider
buying (MA 9 over
MA18), so the trend is better defined and under way. And on the
way down MA 4 under MA 9 is early and should keep
losses at 0-?5%, this depending on the speed of the price dip.
I am sure that a combination MA 5-10-20 gives similar results
and sounds better. But somebody must have run a backtest and found/published
the combination 4-9-18.
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