Short term - knowledge library 1.0 (This thread is READ ONLY.... No unauthorised Posts), page-60

More on Exit Strategies​

Nodferatu
Date: 17/06/16
Time: 10:41:42
Post #: 18055143

As far as when to sell, I don't know how people can put an MC figure on when to sell - to me that just seems like guess work. If the SP remains strong, and trending up - all is good. If it starts looking weak and trending down, time to get out - especially if liquidity is an issue, nothing worse than getting stuck. I have a target price of what I would like to sell at when I buy (usually 20-30%), I re-evaluate that target daily as I don't want to be holding for 6 months to get 20%. All depends of the volatility of the stock. If/when it makes it to my target price I either sell all, or, if I like the stock I might keep a carried parcel just to see what happens - for the elusive mulitbaggers.

STT in my rule book, is any trade held for less than 12 months, for obvious taxation reasons. Primarily to keep it simple for my own record keeping. Realistically though, most of my STT is around 1 - 8 week holds - purely because that's what seems to work for me best. I tend to trade better when I don't try too hard to pick the high, leave a little on the table and move onto the next thing seems to be best with me, dunno why.
I don't do much LT (+12month hold) as history says I'm not so good at it, but I do have and still do a few LT's to remind myself of why I shouldn't do it

Just my view, of course.

……………………..

To add to that, I find one of the biggest factors in deciding how long to hold or when to sell depends on what is happening in market at the time. If easier and quicker money is to be made elsewhere - sell and move on. Patience is a virtue, something that I missed out on

Position sizing and the risk factor of the stock plays a big part too. I try to set my trading account up for how my personal life is at the time - I am not always at the computer, I like to play golf and go fishing etc. That means managing the risk as I can't always react quickly. I don't want a heap of money in a volatile stock if I can't be close to watch it.
………………. RTO's require caution, most are a cash cow for lifestyle salaries imo - raise a bit of money, sell the dream etc etc. Some might be good, but most are just trade opportunities imo.

So many variables, that's what makes us all unique I guess.


Freehold
Date: 17/06/16
Time: 10:57:04
Post #: 18055379

"So When to sell up"

The FA Reason

When the reason you bought it, is achieved , or changes such that it will no longer be achieved.

When I start to waiver on the FA side I start to focus more on the TA ...

The TA reason

TA looking for exit signs either by selling into strength (Spike) or on signs weakness (ie, H&S Tops , Broadening patterns , Trend line fails, break of Key Support,)..

For me exits are by far more difficult than entries.. and you seldom get the timing exactly right exiting on the tip of the last peak. But if you always sell a little into every "later in the trend Peak" your like to be partially right.


forrestfield
Date: 17/06/16
Time: 12:18:38
Post #: 18056528

……………………So what I have learned over the years is just follow the money and go with the flow... While doing this, don't go blind and gamble... like buying 1PG at $5 or 1billion dollar company? Same with any other stock who have made 5 to 10 bags already... Yes it can go higher and make 4 more bags but the same can be done by a small player in the similar sector...

In other words, I go around and find a stock which is in the similar space with good plans a head but with a smaller market cap. Quite often you do well... while doing well (only if it does well) I take profits and try to repeat the cycle.

…………………..


……….... Also logic tells me that after making 100% plus in any stock I think taking some off the table is not a bad strategy after all... I mean generating 100% on your capital should be congratulated... more the better but 100% is a handsome reward IMO...

All in all, I would say my aim is to follow the Trend and while following it just be cautious that it can burst any time... so have to enter in those stocks which in peer comparison do look cheap... so if the sector keeps performing they keep doing well and if does not you are not making huge losses...

So the simple rules I apply:
1. Follow the TREND...
2. Try to get in early... read there are always signs.
3. If you have missed it, follow the next thing.
4. If you think its yet there, join in... but be careful...
5. Do peer comparison. find the ones which yet have to make the run... Like in Lithium boom, I found PLP, ARE, TKL, PSC, EMH, KSN, SYA, ADN, GBX and some others...
6. while buying any of these, follow your trading rules... like buy what you normally buy regardless of the sector... my trading rules are simple...Trend, good cash, management with skin in the game, expected news flow, low market cap, small number of shares, sub holders holding a decent chunk so I can spot the supply source if possible, decent management (some times I ignore this, if the sector is strong)
7. Get in low... if you paying premium should be a strong reason. Like FGR... I paid average 9c and 4.7c for FGROB... I strongly think that this stock is going to do well... so I bought the risk as well...

On top of this, I still get carried away and at times buy a stock against my rules... the results are then 50 50... I make losses on some and I make gains on some... however, if and when I follow my rules I generate decent gains...


Exit...
As long as I make a gain or small loss % wise I don't mind any time... my exits are quite often based on few points:
1. I have generated a decent gain... however, I am learning to let the runners run... so I don't sell them on first weakness...
2. I now hold a trading parcel along with ST parcel as stated few times... so if one of my stocks run hard after I make the entry, I sell my trading parcel and hang in to the ST parcel.
3. I try to put targets on each share I buy... some times I stick with it sometimes I don't...
4. If any of my stock makes me 100% plus I take some profits out of the table... some stocks just hold themselves strong which means I buy back what I have sold... like I sold some in SRT which I end up buying back paying some premium.

In simple words, I have established a strategy which I try to stick with most of the times... however, I keep amending it based on learning experiences... Still have a long way to go when it comes to learning and have to work hard to survive...
[/LIST]

sharks37
Date: 17/06/16
Time: 18:45:22
Post #: 18060583

Exiting trades, a topic that's often at the forefront of my mind (sometimes in front of spending quality time with my wife or where am I going to ride my bike this weekend).

I am TA based trader. I have made some big losses in my time but all of them - 100% of them - were the result of me convincing myself about the fundamentals of a company (and getting it wrong) but ignoring my TA which in each case would have had me out of the position with a good profit or a manageable loss. The lesson learned - I am not as good or disciplined about FA as I am on TA. I find too many shades of grey in FA based decision making on exits, whereas with TA the rules can be very black and white - the price either closes below a certain level or trendline or it doesn't.

Targets or stoplosses are the 2 ways to exit. No matter whatever FA factor that contributes to my trade justification/entry, I always set my trade size, target and stoploss exits based on TA: (a) identifiable chart based levels and (b) the risk/reward ratio between those levels.

Imo the probability of price reaching a given target from the entry price reduces the further the target is from the entry level. In other words if the chart says there are 2 resistance levels which are natural choices for exits, the higher one will have a lower probability or longer timeframe to achieve (if it ever does). Therefore I automatically enter a trade with the view to take some profit at different levels (usually just 2 - so half at a 1st target level and the other half at a 2nd target level) - the 1st level being more probable of success than the 2nd. So to compensate for my effort and the lower probability of the 2nd target being achieved, if the price reaches the 1st target I cash out the designated proportion of my position (usually half) and set the stoploss on the remaining portion of my position at my entry price, that way I have the best chance of making some profit from each trade.

Of course as FH said, if any new information relating to the company comes to hand after entry causes me to change my view about my trade, i.e. FA reasons, I will review my trade justification, but my TA rules are my backstop because I know they are black and white and I am better (psychologically) at adhering to them.

Maybe the above is not the best way, but I've found from experience its best for me.

Cheers, Sharks.


kmac
Date: 17/06/16
Time: 20:01:30
Post #: 18061042

………………..As Simple As Selling Can Get
".......the answer is in one simple/complex word FAILURE. Identifying when to sell a stock requires failure. Identifying when to sell a stock require failure. A stock should not be sold until it does something wrong, or fails to do something expected. The better it has done the more failures should be expected, no apologies or excuses are permitted; failure is failure, objectively seen"

When To Sell by Justin Mamis


Zandaya
Date: 17/06/16
Time: 20:43:17
Post #: 18061246

Stops don't do them period!
Targets- most of my targets are based on TA- entry support levels and exits resistance levels , in some cases its breakout targets using ascending triangles and working out SP targets in relation to base of triangle, every entry is different but every entry has a plan - depending on SP history or future catalyst targets may be 25%, 50%, 100%.. eg entered RYG/XPE very late at 4.8c last year plan was 100%, was at a loss and could of sold many times for a loss throughout the year but patience and belief in FA and TA, carried me all the way to 9.6c sold out completely and now stalking a re-entry back somewhere in the 6's, it may get away from me but so be it, if my plan plays out Im in again for the next ride!
As for exists I'm big on RSI, spreads & volume!
If RSI is lurking at or above 80 and I'm in profit, I may collect and re enter at a lower level, again if I'm on a stock and in profit and suddenly we have a few wide spread down bars on major volume Im out! But it also comes down to what kind of trader you are? Day trading entries and exits IMO purely based on intraday chart signals, STT trades based on FA/TA, Long term based on FA! Let runners run but don't forget to take profits along the way!
Again all this is just my opinion Im not a full time trader, I make money I loose money but ultimately I love trading


TraderGT
Date: 17/06/16
Time: 21:33:07
Post #: 18061530

What exit strategies people use?

For STT it's mainly FA based, I.E. MC relative to peers and if I no longer see value i'll sell this could be above or below my entry price!

Some use of TA but mainly FA based for me.


- Do you set targets and if so how do you set your targets? Do you always sell when target is reached?

I do always set targets, I will have a target in my mind before a buy - YOUR ALWAYS SHOULD HAVE A PLAN

My first target will trigger me to sell some or free carry, remember the trend is your friend


- If using TA to exit, what signals/candles/patterns/indicators do you look for?

For STT I mainly use FA

- Sell or hold on news?

Depends what the SP has done prior but selling some on positive news is generally a good option


- Are there certain times of the day which are better suited to selling?

Yes! - For investments I generally like to enter later in the day as many retailers but early and some may lose patience later in the day, Friday afternoon is always great for the buyer!

- Do you use trailing stops for timing when to sell?

For STT generally I have quite wide stops or sometimes a "mental" stop

- Any other tips for exiting."

Just remember the trend is your friend and let your gains run and cut losses sharply.

When the trend changes you need to act quickly


FullMoonFever
Date: 17/06/16
Time: 23:14:51
Post #: 18062024

Entry / Exits....

Great to read various ideas, methods and what works for people or doesn't. Gotta love this "home" as @specgoldbug would call it

Me...in early days for both E's was all about the FA, the research, the mental target, the Ann's, the entry and like @minoilsays, generally leaving profit on the table on exit if got spooked or hit what I thought was a good target but on the occasion(s) didn't leave anything on the table....ended up indebted to the table

And then...............there was the hype , the glaring lack of knowledge and understanding how quickly the mkt can turn snaps u back to reality at times. Took some slaps to the head back then, made some nice little gains at times too but thinking back, not sure if was luck, some genuine sound researching and actually understanding some stocks FA well or a combination of those . But...all part of the learning curve and wouldn't give it back.

After actually joining HC and mentally measuring my FA thinking against others' thoughts & posts, it gave me new tangents of exploring other ideas and other methods of research & FA but then coming across this "dark art" (to some...lol) on HC called TA, got me to wanting to understand it more as an unemotional check & balance of my FA processes.

So...I tend to use both now, not always to the best effect at times, but nevertheless I try to use both. Only way to get better...make some mistakes along the way. Just not too many and not too big.

I will say that FA still obviously governs my initial interest in a stock & then the potential entry based on impending or potential FA catalysts, so still not completely skilled or trusting in the TA entry at times....still evolving as most of you would know. Not that good yet at looking for TA price targets as not so reliant on patterns (occasionally trying to use as they offer that extra possible dimension) but more Ichimoku for supp / resist and poss breaks into trends and Heiken-Ashi for the trend changes / reversals.

On exits I am becoming more reliant on TA to unemotionally & visually give me the trigger and if I'm out early then so be it...I can always buy back in if the trend kicks again, but I'll take whatever profit is going and try to minimise whatever losses I make (and they r still there & always will be). Like @Zandaya , not a F/T trader and treat this period as my apprenticeship till the day I can maybe go F/T (btw Z....humbled by u putting me in the same sentence as some of those posters u mentioned - long way to go for me I feel but also don't sell your own skill set short mate. U hold ur own plenty IMO).

……………..

As others have said....trends r great and I want to trust the entry & exit indicators in time and let em run.


TheArchitect
Date: 17/06/16
Time: 23:26:59
Post #: 18062082

What exit strategies people use? Do you set targets and if so how do you set your targets? Do you always sell when target is reached?

Depending on the stock and on my investment strategy for that stock, some stocks I go in for the quick short term trade, for those stocks it's based on the set target which can vary on the stock, generally I like to make at least $1k-$5k on each trading parcel which is usually minimum $10k each parcel and up to $100k, so depending on the stock and how confident I am in it, sometimes I will take the $1k quickly straight off but depends what the charts are saying, if the chart looks good I will leave it to run a little more and then sell once it's made a little more. This will also be on stocks I've not been able to do major in depth research into, with those stocks it's even more important that I take the $1k-$5k profit quickly and I don't worry if it continues to run, if it does I'll research more in it and look to take a stronger position and look for a good entry based on technicals.

Part of my exit strategy is having trading parcels along side longer term holdings, when I really like a stock I'll invest quite heavily in it, but I'll also create multiple trading parcels to trade the trend. These parcels will have set targets of making minimum 20% or $1k-$5k profit and I will usually stick to those targets and sell, this is also combined with TA but the TA helps with my entry and also understanding how quick or realistic a target can be in the short term. I had mentioned on the SRT thread my success with this strategy, being able to sell SRT 140 times in trading parcels over 7 months (280 overall trades;buy/sell) making on average $3k per trade (some were $1k but some were over $5k) got a lot of stick for that on the thread and resulted in me having to post up proof of those trades. So by sticking to my targets and sell strategy noted above (20%/$1k-$5k profit targets) I was able to do this with SRT and have done this on other stocks.

There's no specific signal, although on XPE I recently sold my entire position of close to 9m heads in the 10-10.5c range as it twice tried to breach 11c and failed, the MACD was turning and crossing over at the top of the hill, EMA and MA was turning and about to cross, lots of red candles, and just too many trading days of trying to break through resistance at 10.5/11c and just not getting there, low volume at those levels. Once I saw that I sold my entire position which I was already roughly 750% in profits on and will wait to re-enter XPE in the 6c range.



Sell or hold on news?

Depends on the news and also how much the stock has run up before hand, I'll wait to see what the news is or if I know what it is then depends on how market reacts to the news, if I have trading parcels I'll set some parcels in the sell side which usually get taken out on release of the news, that way I at least take some profits, but again depends on the stock and on my strategy for that stock and on the news.

But if the stock has already had a major run and is overbought then quite likely would sell on the news or at least soon after, sometimes wait and see how the market will react, might run more or it might fall and you sell at a lower price still making profits, but again all depends on circumstance.

Depending on the news and the stock I sometimes buy on news.

SRT I know more news will be flowing upon re-listing, I still have trading parcels therefore some of those will be let go when re-listed at rough target prices I already have mentally set, but will otherwise hold through most news unless it's bad news which then I'd be selling like most others.


Are there certain times of the day which are better suited to selling?

Morning is always good, early-mid week, don't have a real specific time, I usually will sell when I need to/choose to based on the trading behaviour of the stock. Morning rush is good as you sometimes get those spikes and the late arvo as well if you're wanting to sell.


Do you use trailing stops for timing when to sell?

I never use actual stop losses anymore, was stopped out of some stocks in the past that then ended up going for a run right after it hit my stop, didn't drop lower hit right on my stop on each stock and then I ended up chasing, still made money in the end but was very annoying. I now use mental stops and I try get into stocks early before they have runs, so if they do drop I usually will top up depending on the stock and my investment strategy, but I have a mental note of certain target price that if it starts falling too much I'll sell and re-evaluate.


Any other tips for exiting

Make sure there's enough demand for a stock to be able to sell down into when you decide to sell, all good buying a stock but if there's little demand for it when you want to sell you'll be screwed, hasn't happened to me but it's something I look out for when buying a stock.

Don't Be Greedy Take Profits!


mouse
Date: 18/06/16
Time: 01:09:22
Post #: 18062368

- What exit strategies people use?
- Do you set targets and if so how do you set your targets? Do you always sell when target is reached?

Really depends on why & where you bought in, the most important but also the hardest part is buying in when it's trading at half a cent with no recent volume.. Don't be a sheep a buy after the rally, pick a trend or a good story and stick by it, if you got in cheap that don't stress about small pull backs.

For me being a major on FA, i have to value the company and get around about figure value and stick by it. There is so much to this & has taken years to learn but basically just need to find a current comparable company & asses it's value.

Most Techs ran to $100 mill MC last year, Picked up AZK, NOR, AWD in the $10 mill MC range and held out, the hardest part of this was watching profits fluctuate by 10's of thousands of dollars, that's when i started a swing trading parcel... Every time the stock went up 20-30% i would sell, if it came back 20 - 30 % as long as the MC was still under $100 i would buy but always keeping my ST parcel.

I don't really care what anyone thinks but there is pro traders behind all pumps, when you see the big spike like 50% and then the next day and the next day it rally's that is the pro's getting ready to go out.

Now i get tech at $50 mill MC max.

Gold miner explorers with decent ground do $20 mill max but 16 is the average.

Lithium miners i got at around $4o mill MC

It doesn't always work out but has had a 80% win ratio for me doing it this way.

There are exception's in this market but the story needs to be fantastic.


- If using TA to exit, what signals/candles/patterns/indicators do you look for?

N/A

- Sell or hold on news?

Sometimes news add's value & can give you a future event to get more gains but if we are talking about just pure trading then yes sell on decent news but wait for it to peak..

- Are there certain times of the day which are better suited to selling?

I posted this a wile ago but here it is again.

Entry and exist without charts

I want to share something with everyone that has taken a lot trades to learn... It's more geared towards day trading but may help in some way, also it's not 100% accurate but for me it's been more right the wrong. The times listed will very and the live market depth on IRESS is helpful with seeing the bigger play...

Between 10-10:30am a stock normally goes bunta ( best time to sell )

10:25- 11am a stock normally gets sold off ( Decent time to buy volume pending )

11- and 11:50am it may bounce around

11:45 - 12 a sell down will resume ( My favorite time to buy )

About 1 Pm the buying depth's start to look ok and makes a run soon after that

3:45pm some selling starts to show... at this point I'm looking at how strong the buying or the selling is to get an idea if it is a over night hold but day traders normally leave it to the last few min to cash out.

- Do you use trailing stops for timing when to sell?

If you are in front of the computer you should watching your trades, i never used a trailing sell.


- Any other tips for exiting.

If you asking all this because you have lost money in the last few weeks then welcome to the club, my strategies works fantastic in a bull market but in the last few week's i have blown close to $25k, not overly upset about the money as i have made plenty this year but just upset at the fact i love trading but can't get into it right now until market starts to look better. Decided i will be very picky & just wait rather then trying to trade against the odds... If i learned one thing that is important it's conserve cash cos when the bulls start running & who knows what/when that is, you get to hit that much harder.

In bearish times invest in your self...

Don't stress if you get wrong, know that the market has been around for more then 200 years and will be around for 200 longer, learn from your trades good & bad, have a look at others that went up or down, see what happened to them TA & FA.


lucky 992
Date: 18/06/16
Time: 15:17:41
Post #: 18064369

Exits....... used to be the bane of my life until I got so burnt that I spent the next two years educating myself to know when to get out. I feel @minoil (s) pain every time he mentions it..... regularly ha ha! (Is contact possible?)
Do you set targets?
All of my exit targets are now ta based. Even if an announcement is released, I go straight to my charts for the signals. This way I know whether to sell into the news or hold on for the run up.
If using ta what signals/indicators do you use?
Now I go to write it down it seems really complicated and I suppose it is. I have six conventional indicators in a particular combination which I selected by methodical elimination of over 100 others. (again, two years work) These will have been turning one at a time as the event approaches.
In conjunction with these I really like the volume spread analysis stuff although I don't use this in its entirety exclusively to trade. Its all a big picture to me. Sometimes gann might be working well, sometimes, time by degrees, sometimes Elliot wave etc. But always Volume. For a company that I am right into, that is a good prospect, doing well good news flow and company progress etc, eg, xpe at the moment, I would be using 10- 20 charts to keep an eye on things as time to get out nears.
Since I have become happy that I have getting out under control my trading has gone ahead in leaps and bounds.
Certain times of the day to sell?
Most of this has been mentioned above, and like all other decisions, this can be a bit subjective based on the circumstances at the time. Buying on the open is not something I make a habit of, but I have been know to do it if the circumstances require it. I am guilty of buying on Fridays regularly, when the bargains are to be had and the charts agree that its time to get in. I have no problem with weekends what so ever.
Trailing Stops?
In the early days after a few years of very limited buying and selling I paid for some tuition to learn the basics.
One thing I was taught was to never put stops with your broker. Why would you give you enemy your game plan? It is advice that has served me well.
My stops vary from day to day but really they are taken care of by the charts. Most times you will be looking at a resistance chart vs volume vs other chart action and you might need to lose a point or two to eliminate the triggering of some stops by the brokers. The time it doesn't bounce back, and the signals are correct, you get out.
Any other tips?
Study to a level where you are happy to be where you are in the market. My mentor used to say, if you don't know why you are in.... get out.
The STT library and threads and the education forum from week to week are a fantastic place to pick up ideas to work with. Like the experts say, over the years you get your own system that works for you.
Get your own system and dont be influenced by others without proving it for yourself. In this regard trading can be a lonely game, (luckily I am a loner) but I find this place a lot like riding motorcycles, you can go out with a hundred blokes and still be on your own.....

Great stuff on here as usual keep up the great work.

"All is not always as it seems"


oNste
Date: 19/06/16
Time: 01:38:57
Post #: 18066080

My exit strategy so far (I doubt anyone other than noobies will be educated by my basic musings) is very simple and "as she goes", basically when I realise that I've made an error in judgement (I'm finding that as I improve my thought process, I realise I've made an error pretty often) I get out fairly quickly. I think ultimately this would probably play into a lot of others processes of exit. For me, an exit currently isn't so much "I'm up time to go", but "I'm not sure I made the correct call in the first place, time to go". I'm happy that it's developed to the point where now my losses are far smaller than they once were, so this in my mind is progress. For all the newbies out there it's pretty much the one thing I'd advocate, creating and harnessing the ability to admit to yourself you were wrong and take a small hit. As opposed to digging your heels in and believing it will come back. Deep down I think every single holder gets that moment with every holding when they KNOW they need to bounce, but due a variety of factors. They don't pull the trigger. I'm happy with just being able to switch my position quickly nowadays and make decisions in days that typically would have taken 50% losses and months.


64eheh
Date: 19/06/16
Time: 10:18:40
Post #: 18066508

exits......

there is never a clear answer.

The best method I find is just let some sort of trailing stop take you out for a trend trade. Simple is best.

For a momentum trade having a target helps, but, whatever you do, don't depend on it. It may not get there, but you may still hold in hope, only to watch your profits fade as you still wait patiently for that, well worked out TA chart based target, to arrive. So maybe targets are not a good idea after all.......better to use a trailing stop!

You will never get out at the top, unless you get lucky, which is undesirable, as luck makes a poor trader. So best not to worry about it. Try and take the biggest middle portion as you can.

Don't use TA as a predicter, but as a following tool only. No market will follow your TA, your TA follows the market.

In the end, exits come down to judgement, TA exit indicators, market conditions, Fundalmental analysis, discretionary judgement or a combination of these. It will be determined on a case by case basis. No one size fits all stocks.

But don't stress it. Do your best, and as time goes on you will get better and by then you will probably just have a very simple system worked out. Which is probably what you needed in the first place.

To take the pressure off here are a few things I do....

Look for other opportunities. By finding something else worth trading gives you the opportunity of taking some profits form one trade and redeploying them elsewhere. It makes carrying a trade that has more than doubled easier and less pressured, thereby making exit decisions easier. It's a compromise between letting your profits run and taking profits. After all you don't want be in a situation where you say......"I won't go broke taking profits", you want those profits to run and by taking some off the table might make it a little easier.

Try and annualise the profits on a trade. Say you make 10% in a week...then 10% times 50 weeks is 500% per annum. An exorbitant amount. By doing this it helps put your trade in perspective, making exiting a little easier.

If you are stressing on the exit of one trade....you are probably over commited to that trade. Reduce your size to make it easier to manage.

I find myself now concentrating on my total returns of all trades over a year. That way I don't worry as much on individual trades. It seems to help me trade better over all stocks and all time frames.

And never forget......one trade should not matter in the scheme of things, it's what you do over many trades that matter, so instead of trying to squeeze the most out of one trade, try and maximise your results for the year over many trades and if they are better than a managed funds return, then, you are on your way. Build your results from there.

Emotionally, it's far easier to start with a base result and build from there, than starting with stars in your eyes and failing to reach them.

keeping it as simple as you can is probably the hardest thing to learn.


tradesurfer
Date: 19/06/16
Time: 16:53:36
Post #: 18067976

There is no simple or fool proof exit strategy and i have tried multiple different ideas with many indicators..

1 thing i have learnt and have been taught from a young age (you will never go broke taking profits).. The only times i have taken decent losses is generally from greed or over confident and sometimes believing in the hype and not trading the trade.. Being on HC for many years now and seeing all these amazing stocks that were going to $1 with the same posters still stuck in these stocks while the price has never returned to previous highs and most appear to make new 52week lows....

I find it very hard selling on the way up sometimes but even more so when the trend flops and the pros leave only to see your profits decreasing daily and lack of volume can make it tricky if holding a decent position..

Stops... I dont like for ST plays as im in the market everyday and sometimes they get hit on tiny pullback/testing volume which really annoys me when the next day the volume surges up with price.. But i do set a volume alert that would let me know if any unhealthy volume appears..
I do use for intra-day trading as im generally only holding for a small amount of time and im buying these small vol pullbacks and setting stops tight under this..

64 mentions some very smart ideas and is basically how i think...

I believe in safety in the market while taking gains and compounding your money. Be it daily weekly or monthly i understand the tax benefits to holding stock for a certain amount of time but i would rather pay the tax man than holding a stock for the big bagger only to be let down and end up either taking a loss or a small % gain.. Does not mean i miss out on good returns it means i de-risk with the trend and nothing annoys me more than watching profit dissapear as i know how hard i would of previously worked on the rigs to earn this....

As im fulltime and trade soley for my income i need to provide consistancy...

Look at MNE im now stuck holding this till Nov and its likely im not going to make a good % return off this for the amount of time i have my funds locked up for..

Every hot stock will offer multiple ops to get in and out while realising profits along the way and growing your acc.. Yes brokerage maybe increase but in all honestly i would rather do this than see my profits decreasing and each pip can be $1k+...

Every year i gain something i learn and stick to BUT... the most important factor for myself is providing for my family with the least amount of stress possible...

Below is a trade in NOR...

First off was watching NOR closely with the volume for a confirmation entry white line before zone 1...
#3.8c was break of trend also a flag..
#White line is trigger buy on increasing volume @4C..

Zone 1.We can see pros getting set with a very tight spread churning volume back and foward to lure out any shacky hands followed by a low volume pullback load up the truck area...

Zone 2.We see increased volume at the break out area 5.6c while this time the spread has rapidily increased giving some rapid increase in % gains to create that FOMO effect where going to moon... While in zone 2 we see RSI way overbought 88.87 .. We can also see a definate increase with selling with the last candle in this zone showing a tighter spread suggesting the sell off is approaching..

Inbetween Zone2 & 3 we see volume dropping and a distribution candle take place but trend still in play and i would only sell if that 9.7c area broke down.. Next day bounced off 9.7c..

Zone3. Keeping an eye on the large spread but tiny volume also noticing RSI lacking same strength as previous rise and again overbought... Trigger for me was that distribution candle with the red arrow.. White line was my trigger sell area broke down 14.5c out 14c...

While price hit 17.5c i did not get the top as i would rather try stay in the trend rather than chasing tops... Notice the second time the price moved up to 17.5c was very weak which indicates pros had already left and just a few rec traders trying for a small push which failed...

This chart clearly shows how volume is the most important thing to watch and what is happening with the spread price action...
Both the yellow candles show traders have had enough and down volume increases firing negative signals and breaking support 9.7c..

I did not hold all my parcel up to 14c as i believe in selling on the way up and locking income pretty much free carried from 9.7c as this area's volume had alot of pro selling ..

Below is just a ST trade that seems to work ok for myself does not mean it will work for everyone and this is something im frequently working on..

Also DT NOR but the pro's on this stock were very hard to read hence why EOD for myself was my appropriate to investigate...

As with my buy signals i keep it simple these days and try to focus on a few important factors.. So my Exit signals i keep simple they do not always go to plan but over the years there getting better with patience and age ..

#Whats the current marekt like any bearish events approaching.. Are we in a bullish surging market(when the fish are biting make the most of this)...
#Time of year(june can be tricky)
#Broker data
#How often is this stock being mentioned..
#Volume/spread
#My mood
#do i have any family hols approaching..
#catalyst event



The above is just my way of working through a ST and trying to work out a good exit for a good return...
Sometimes they are just a quick few day swing or a month+ hold 1 thing to note i rarely hold the full amount on any stock all the way up..

And if i do get a negative vibe and the trend is going against myself i get out fast and move on...


firsova
Date: 19/06/16
Time: 21:13:03
Post #: 18069114

Exit strategies for me as soon as I dislike a stock i sell as fast as I can even if it means taking a loss

If however a price drops and I still like the business i am happy to average down 3 or 4 times , and if momentum shifts up again I go heavy at and take profit on the way up and hold on to my original position for free carry.

Sometimes it never stops falling and I do my money , but only in companies i still think have value , rule 1 is my number 1 rule , even if i have averaged down , and come to the conclusion th e,market is right and i am wrong i sell immediately and cop the loss

The first loss in my view of bad situations is the best way to exit

On good positions I exit when I double my capital by taking 50% and letting the free carry run until i think the shares are expensive then i sell the lot