Last Post 01/22/2013 01:06 PM by taramck (50) . 4 reply.

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01/03/2013 09:31 AM

sell "rules" ?? (NEWBIE - PLEASE HELP)
by taramck (50) Joined on 12/02/2010 Posts: 4

If sell rules include selling a position at 20%  UNLESS it goes to 40% (then stay in and watch)... how do you not sell at 20% and miss that 40%?  What am I missing?  I'm new to this method, but have always sold at or around 20%.  I'm watching a stock that has hit it's "profit" area on the MarketSmith daily chart after coming out of cup with handle pattern (stage 1, 36 weeks).  It is 29% from pivot point.  Can someone help me understand this method in this situation?  Am I watching the stock only, the market direction and the stock?? 

Thanks for any and all advice.



01/03/2013 10:45 AM

Re: sell "rules" ?? (NEWBIE - PLEASE HELP)
by l (5095) Joined on 07/03/2010 Posts: 486

I'm not sure I entirely follow your questions, but here's my best efforts:

  • Get used to taking 20% profits when the market is kind enough to dole them out. They will pay for your mistakes. However, in the event that you have a stock that runs 20% in 2-3 weeks, hold it for 8 weeks mandatory. This is to see if you have a real monster on your hands. This is what can make your year.
  • Watch the index for the general trend to determine if you should be in the market and how aggressive to be. Watch stocks for peer beating performance both fundamentally and technically.

Hope this helps,

l



01/03/2013 10:52 AM

Re: sell "rules" ?? (NEWBIE - PLEASE HELP)
by taramck (50) Joined on 12/02/2010 Posts: 4

YES, that does help!  the part about holding if stock runs 20% in 2-3 weeks... <----that's what I was wondering!  Thanks so much!!!



01/07/2013 12:51 PM

Re: sell "rules" ?? (NEWBIE - PLEASE HELP)
by jebmkm (135) Joined on 04/30/2010 Posts: 34

The rule says if  a stock goes up 20-25% within thefirst 1,2, or 3 weeks MUST hold for min. of 8 wks.

If it DOES NOT, sell when up 20-25% BUT NEVER LET THIS KIND OF PROFIT TURN INTO A LOSS!!!

says nothing about 40%,  WHAT stock are you watching??



01/22/2013 01:06 PM

Re: sell "rules" ?? (NEWBIE - PLEASE HELP)
by taramck (50) Joined on 12/02/2010 Posts: 4

Ope, sorry.. so not good at keeping up with the forum.  The stock was QIHU.  I've been reading so much my brain hurts.  But... so far so well worth it.  :)  Been at this for several years and only recently finding consistencey all thanks to the info found here.  

Does anyone know of any software or excel spreadsheets for tracking multiple people?  I want to separate my kids money.  I don't want to spend time making one.

 

Thanks again for all your help!  I'm beginning to understand this even more!!