StockFetcher Forums · General Discussion · Exit Strategies<< 1 2 >>Post Follow-up
carolynandjoel
30 posts
msg #37712
Ignore carolynandjoel
8/30/2005 1:21:56 PM

Hello All,
Thank you all for the excellent help in the past on a variety of issues. I have noticed that a lot of emphasis is devoted to entries. Looking for the best filters to find the best stocks, etc. But I haven't seen much attention to exit strategies. I am not happy with any I have tried. Trailing stops give back too much or are quickly stopped out. Any of the short term cross overs lead to too many whipsaws.

I know that IBD says if you have a profit of 20%, you should at least start to reduce your holdings. However, I have not had a profit of a least 20% on any one position in a long time.

So, do any of you have any ideas about where to find a discussion of exit strategies? Or, do any of you have a favorite way to exit?

Thanks again, for all the great help. Carolyn Senter


da-net
55 posts
msg #37713
Ignore da-net
8/30/2005 1:47:17 PM

Hi Carolyn,

I am a extremely shocked and confused...you stated that you have not had a 20% gain on any position in awhile...Did you not take action on the trade that I and a friend laid in your lap on your other thread.

http://www.stockfetcher.com/stockdb/fetcher?p=forum&sub=view&fid=1001&tid=37298&start=10

I bought in at $0.675 then more at $0.95 and more at $2.19 and finally liquidated at $2.77 on the downside after it topped out at $3.37. Is there something you saw wrong that I am not aware of? Or is it that you do not consider these type of swing trades? If I share the latest choice with you, will you take action?


carolynandjoel
30 posts
msg #37714
Ignore carolynandjoel
8/30/2005 2:33:14 PM

Hello again,
I do appreciate your input but I feel like it might be confession time. I have always avoided cheap stocks. Now, I am willing to take another look. However, all the "experts" tell us to avoid stocks under $10 or $15.

Please tell me, how would I evaluate the stocks in your list? Usually, I take the suggestions to Business Week or IBD.

Quite honestly, I am willing to confess that the techniques I am currently using are not making me profits! They are not making my retirement more comfortable!

So, am I willing to look at your suggestions? Absolutely yes! But am I not supposed to have a system for determining the "appropriateness" of a trade withing the confines of my "plan?"

But I guess this is all related. My exit strategies AND my entrance strategies both need help.

Thanks again, and I am willing to look at anything. Carolyn Senter


rrrbbbggguo
29 posts
msg #37720
Ignore rrrbbbggguo
8/30/2005 4:13:20 PM

Carol:

My experience is that we should focus on change point of a trend. Problem is how to find this points? Read each stock' daily graph pattern carefully, you will find when someone enter or exit at this special points they usually make lots of money, and of course, lots of fun! So the trick to make money is follow as close as possible, or (better) act ahead of these smart guy to buy or sell.

Indicators help spot this points, so you have to familiar with these indicators, and fully understand them and use them correctly, with some effort, you will feel the power of these indicator and will happy wholeheartly.

The secrets for success is to read the patterns of stocks that have big loss or big win on a daily basis. Slowly you will undertand what I mean.

Good luck!


rrrbbbggguo
29 posts
msg #37722
Ignore rrrbbbggguo
8/30/2005 4:37:55 PM

Carol:

When you find a position of a stock you can make 20% profit when it reach next resitance level, then you should buy it, and make a limit stop (max 1% loss) to protect your principle. Usually I am doing in this way, and reults are very good!


da-net
55 posts
msg #37723
Ignore da-net
8/30/2005 4:58:10 PM

Hi Carolyn,

I will attempt to address your inquiries in order. What exactly is a cheap stock? To one person it could be stocks under $1.00, to another perhaps under $20.00 and still to another stocks under $100.00.

Last year I subscribed to several investment services (some costing thousands per year) and those "experts" cost me over $20K in losses not counting their services.

As to stock pricing the OIC states that more people buy stocks in the $20 to $30 range than any other. Those experts that tell you to avoid certain issues...Why do you think they tell you that?

To explain how I evaluate potential positions is too lenghty to explain on the forum as it requires about 5 minutes of extensive study after I have used my filter and did a quick eyeballing of each chart stockfetcher displays. You will need to find your niche that you like to trade in and what tools you use to evaluate them. EG: You might find this interesting that institutions trade BB stocks and accumulate them (but they tell you not to). To know what the institutions are doing in a particular issue, I use finance.lycos.com

If you need to learn how to use technical indicators / tools I would suggest a subscription to www.investorflix.com It has saved me countless hours of book or PDF reading. I once read or heard "It is not how many trade decisions you make, but the quality of the decisions you make"

I am semi-retired as well. I now trade for a living and every day I attempt to learn. I find it amazing that as I learn something new, I realize how little I know. Why don't you take a look at the thread I started of "Free Gifts" it has lots of helpful items.

As to your plan and the appropriateness of a trade, if it is not making you money evaluate what is wrong with your plan. What happened in trades that worked correctly and what happened in those that did not work. How did you deal with each trade? Did you get anxious and exit a winning trade too early? Did you hold onto losing positions with the old "it will come back then I will exit when it's even" thinking. Did you take too large of a position and were fearful or greedy? Do not try to find a different plan unless the current one is either too risky or simply does not work.

As to the current position...I took my first position today in CNEH with 2000 shares at $0.65...PLEASE do not take a trade in this unless it is appropriate with your trading plan and objectives!


rrrbbbggguo
29 posts
msg #37725
Ignore rrrbbbggguo
8/30/2005 5:46:40 PM

da-net:

For CNEH, why you choose 0.65, but not 0.60, the previous peak?


da-net
55 posts
msg #37727
Ignore da-net
8/30/2005 9:45:20 PM

"rrrbbbggguo 8/30/2005 5:46:40 PM

da-net:

For CNEH, why you choose 0.65, but not 0.60, the previous peak?"

I am not concerned about a nickel or a dime upon entry, especially in a thin market. I am more concerned about positioning. If this was an extremely liquid market at this time I would be more concerned about that nickel or dime. When the market is illiquid the MMs tend to widen the spread and short sell very very little stock, as they want to control risk as well as you and I. I use my trading rules to help me control my risk. Furthermore, if this performs like expected...this first position will just blend into the total trade.

Hope this helps!


TheRumpledOne
6,358 posts
msg #37728
Ignore TheRumpledOne
8/30/2005 10:41:24 PM

Many traders want to know when to sell.

Here is one way to know when to sell... add these lines to any of
your SF filters:

set{p1, high - open}
set{q1, p1 / open}
set{pct, q1 * 100}
set{pct1,count(pct > 1,100)}
set{pct2,count(pct > 2,100)}
set{pct5,count(pct > 5,100)}

and add column pct5
and add column pct2
and add column pct1

These pct column will show how many times in the last 100 days the
stock went up 5%, 2% and 1% from the opening price.

If I see that a stock went up 1% 70 days and 2% 50 days and 5% 10
days, and I bought the stock and it goes up 3%, my stop would be set
at 2% and if it goes up 6%, my stock would be set at 5%.

Very simple, but it works.

Of course, you can change the values to your liking to show other
percents.

MAY ALL YOUR FILLS BE COMPLETE.


ronun
27 posts
msg #37736
Ignore ronun
8/31/2005 2:24:35 AM

Look over some of Gary B. Smith's writings:
http://www.thestreet.com/comment/techtake/742048.html


StockFetcher Forums · General Discussion · Exit Strategies<< 1 2 >>Post Follow-up

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