| yudapal |
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Gold User, Member, TeleChart
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| Registered User |
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| Unsure |
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| Wednesday, March 15, 2006 |
| Sunday, June 18, 2006 10:11:16 AM |
8
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Will probably take out MAY low
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Tested March low, MS and TSV divergence
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Is it cause the NDX tried double top before starting next leg down?
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Thank's I did enjoy it
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There is one about Time stop too that could be used you take a look over there in the archives
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With no pun intended, a profit is more difficult to take than a loss. Loss-cutting tactics are always uncomplicated and subject to cut-and-dried rules that truncate your loss according to a prearranged plan.
On the other hand, determining whether to take a profit or let it run can be a difficult judgment decision to make on the spot. Most people find their judgment impaired at the point of decision. This is simply because they are under pressure and their emotions take control.
A mechanical system can help you get around this. Most systems for taking profits fit into one of two categories. (1) Take your profit because youve attained a preplanned gain - such as 20 percent, or maybe 50 percent. (2) A trailing loss cut, which is moved up as the stock advances. For example, some investors move their loss-cut points up gradually according to a rising trendline, or in sync with a moving average. One method is to use the lows of minor dips as they form in successively higher steps. One thing all trailing loss-cut methods have in common is that you are taken out on a downside violation of the current loss-cut level. Which means that you always sell on weakness, which is a bigger disadvantage than you might guess if youve never tried it. A big advantage, though, is that a strong stock can climb to the moon without faltering enough to shake you out. Which means that your profit can run and run and run. All the way to the moon.
Profit taking systems tend to become at least a little complicated. Lets say you decide to sell whenever you get a 20 percent profit. A stock advances 15 percent and then turns around and heads south. How much of your profit do you give back before getting out. One way is to combine category one and category two. You could use a trailing loss cut and sell when your profit is 20 percent or when the loss cut is violated - whichever comes first.
The important thing about system selling (or exiting in general, that is) is that all the decisions have to be made in advance. You dont create a battle plan in the middle of the battle. When you take a position, you should already know exactly what you would do under any circumstance that could develop.
this is a copy what i found in the worden archives
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Any suggestions on this subject would be appreciated I bought TGC @ .80 what do I do now? would like to hear from people with experience from the past ten years how you think about the matter should I wait for 1 day reversal's I think he will get me out to soon or I would like to hear some other options, thanks
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