Results 1 to 7 of 7

Thread: What's your sell strategy when you are looking to close a trade?

Hybrid View

  1. #1

    Default What's your sell strategy when you are looking to close a trade?

    Hi what is your sell strategy when you are looking to close a trade?

    Do you wait until you hit your predefined limit and take the profit or do you just let it ride as far as possible.

    For example on my trading platform I have the option to set a take profit where I could set it to execute at 100%. Meaning I would get my original investment back at have the rest to re-invest.

    Or would you just leave it to go as far as possible maybe like 2x,3x,4x

    I am always wary about closing positions.

    Thanks

  2. #2

    Default

    1. Plan your trade and trade your plan- exit strategy should be part of this plan- do not deviate!
    2. Protect the principal
    3. lock in 5%+ gains asap-raise stops
    4. sell into strength- dont be afraid to take the gain
    5. when in doubt take the gain- dont over think it!

    Last edited by Hombre Plata; 12-23-2021 at 12:47 PM.
    Anyone that identifies themselves by the color of their skin, is a racist.
    There is only ONE race of people on this planet, the human race.

    Do not be deceived, Darwin’s theory of Evolution is racist. When Darwin is properly understood, it leads to the justification for believing that certain races of people are by birth and nature superior to others and that is the definition of racism.

  3. #3

    Default

    If my predetermined hits within weeks and the trade is a sizable profit? I just take it, most often to early, Lucid is a recent example.
    If you love the company, or believe, try to be buying on the dips, then swing selling tops to build shares.

  4. #4

    Default

    Also, don't be afraid of selling losers. Taking a 20% haircut is better than following a company down into the blackhole of a 99% loss in the hopes that one day it might come back - say in 10 or 20 years.
    American Legion Preamble: https://www.legion.org/preamble

  5. #5

    Default

    Why take a 20% loss on a full position??? Pyramid in, in traunches and set a stop market order at 6% below your initial buy in price. Example: Trade plan- Buy 1000 shares of XYZ stock currently trading at $1.00 First order is 250 shares at $1 and immediately place a sell stop market/ good till canceled order at .94 Then wait and see what it does over the next day or two. If it drops and you get stopped out you have reduced your losses by 75% by dipping a toe in the stock and NOT going all in. If and when it rises by 5-10% then you buy another 250 shares and raise your stop loss order accordingly. Wash rinse and repeat until you have your full position. BUY INTO STRENGTH! DO NOT BUY MORE WHEN THE STOCK DROPS THINKING IT WILL COME BACK UP, BECAUSE IT WONT!! If you get stopped out then it did what it was designed to do and move on. After all, arent you buying stocks so they will rise?? Unless you are shorting then thats a whole nuther ball of wax... By the time XYZ hits $1.40 you should be all in at around $1.30 or so and your stop loss market order should be at your all in cost per share ($1.30) so if it drops unexpectedly you protect the principal and have a net loss of zero. As it rises, raise your stops and lock in gains... Rule number one is PROTECT THE PRINCIPAL! When in doubt- TAKE THE GAIN! DONT OVER THINK IT... A 5% gain is a billion times better than a 15 % loss... Also make sure the stock you are buying has at least a 200K daily volume minimum, low volume means slow to no price action...
    Last edited by Hombre Plata; 01-05-2022 at 06:39 PM.
    Anyone that identifies themselves by the color of their skin, is a racist.
    There is only ONE race of people on this planet, the human race.

    Do not be deceived, Darwin’s theory of Evolution is racist. When Darwin is properly understood, it leads to the justification for believing that certain races of people are by birth and nature superior to others and that is the definition of racism.

  6. #6
    Join Date
    Jun 2022
    Posts
    3

    Default

    I make a goal whether it is 2x ,3x etc...if i hit my goal then i usually sell otherwise if you have trust on the company , you can wait further.

  7. #7

    Default

    Quote Originally Posted by Hombre Plata View Post
    Why take a 20% loss on a full position??? Pyramid in, in traunches and set a stop market order at 6% below your initial buy in price. Example: Trade plan- Buy 1000 shares of XYZ stock currently trading at $1.00 First order is 250 shares at $1 and immediately place a sell stop market/ good till canceled order at .94 Then wait and see what it does over the next day or two. If it drops and you get stopped out you have reduced your losses by 75% by dipping a toe in the stock and NOT going all in. If and when it rises by 5-10% then you buy another 250 shares and raise your stop loss order accordingly. Wash rinse and repeat until you have your full position. BUY INTO STRENGTH! DO NOT BUY MORE WHEN THE STOCK DROPS THINKING IT WILL COME BACK UP, BECAUSE IT WONT!! If you get stopped out then it did what it was designed to do and move on. After all, arent you buying stocks so they will rise?? Unless you are shorting then thats a whole nuther ball of wax... By the time XYZ hits $1.40 you should be all in at around $1.30 or so and your stop loss market order should be at your all in cost per share ($1.30) so if it drops unexpectedly you protect the principal and have a net loss of zero. As it rises, raise your stops and lock in gains... Rule number one is PROTECT THE PRINCIPAL! When in doubt- TAKE THE GAIN! DONT OVER THINK IT... A 5% gain is a billion times better than a 15 % loss... Also make sure the stock you are buying has at least a 200K daily volume minimum, low volume means slow to no price action...
    Make sure it is a stop market and not a stop limit to protect you if it should happen to drop fast enough to drop through your limit before it can sell.
    Now there's no more oak oppression
    They passed a noble law
    Now the trees are all kept equal
    By hatchet, axe and saw.

    I will not comply.

    The Tea Party... quietly plotting to take over the world,
    and leave you the hell alone!

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •