StockFetcher Forums · General Discussion · When should I take my losses and move on?<< 1 2 >>Post Follow-up
SFMc01
272 posts
msg #54789
Ignore SFMc01
9/14/2007 12:47:58 PM

I'm a Daytrader/Swing Trader who shoots for 1% per day average. I own a couple of stocks down about 8% in the last week to 10 days and they are just hovering there. I have an absolute Financial Stop Loss of 10%. Each stock is rated by Investors Business Daily as "A" or "A+" and in the "Top 100". Analyst Concensus is "Buy." One has just dropped thru the MA(50). Each day I wait costs me money. I know no one is a genius, but, would you share some "rules" for when to dump?

curmudgeon
103 posts
msg #54791
Ignore curmudgeon
9/14/2007 1:00:41 PM

http://www.iitm.com/

As good a place as any to start on money management. "Trade your way to financial freedom" is a good book on risk.

Position sizing is very key to success in trading. An 8-10% stop indicates to me that your entries may need improvement. 2% seems more appropriate.

jrbikes
624 posts
msg #54792
Ignore jrbikes
9/14/2007 1:33:34 PM

Tools and Tactics of the Master Day Trader is a good one, has some good info on entry strategies and exit (stop) or (profit) strategies!

maxreturn
745 posts
msg #54793
Ignore maxreturn
9/14/2007 1:59:58 PM

Agree with Curmudgeon. This may be obvious to some but many times stocks in the IBD 100 have already made a tremendous run and are due for a correction. My advice is that you use the IBD 100 as a watchlist and run a good pullback filter on it each day. Then develop specific entry/exit rules. My guess is that you can improve your risk/reward ratio significantly by doing this.

karennma
6,386 posts
msg #54794
Ignore karennma
modified
9/14/2007 2:06:47 PM

SFMc01
SFMc01 9/14/2007 12:47:58 PM
. I have an absolute Financial Stop Loss of 10%. Each stock is rated by Investors Business Daily as "A" or "A+" and in the "Top 100". Analyst Concensus is "Buy." One has just dropped thru the MA(50). Each day I wait costs me money. I know no one is a genius, but, would you share some "rules" for when to dump?
=================================
================================
Bill O'Neill, the publisher of IBD has a 7-8% rule, so according to his guidlines you should've been out.
I used to use IBD and buy those A+ stocks, but in a market like this, how do you know WHICH ones are not overbought (i.e., CROX). I hate to say it, but a lot of these analysts will give a stock a buy rating so THEY can get OUT of it. Then, when the dumping begins, you're left holding the bag.
IMHO, it's better to buy stocks that are "beaten down" (the "D" stocks in IBD).
I don't like the idea of "buying high, and selling higher", 'cause you may not get that higher price you're hoping for. (there are some exceptions ie., RIMM, AAPL, BIDU)
I personally have a little mental game I play with myself.
I tend to over-react to things, so here's how I play my game.
When I starting saying to myself, "Oh My Gawd, that stock's never gonna go down" (i.e., RIMM); then I KNOW it's time to sell.
If I start saying to myself "OMG, that stock is finished; it's never gonna go up again", I know it's time to buy.
LOL!!

BTW ... which 2 stocks are they?
:>)








TheRumpledOne
6,358 posts
msg #54795
Ignore TheRumpledOne
modified
9/14/2007 2:54:37 PM

Usually, the stop is placed a few ticks BELOW SUPPORT on the chart when you enter the trade rather than using an arbitrary percentage.

I wrote a few filter displays that show support.

Fetcher[
add column R2
add column R1
add column PP
add column S1
add column S2

close above 1
avg vol(5) above 1000000
avg vol(30) above 1000000

]




Fetcher[
/* Dynamic Support/Resistance */

/* PRICE POSITION PERCENT DISPLAY */

/* enter your Upper Limit criteria */
set{UpperLim, High 5 Day High}

/* enter your Lower Limit criteria */
set{LowerLim, Low 5 Day Low}

set{LimDiff, UpperLim minus LowerLim}
set{PPDiff, CLOSE minus LowerLim}
set{PPDiv, PPDiff / LimDiff}
set{BallOn, PPDiv * 100}

set{PCT, LimDiff / LowerLim}

/* column display */

add column BallOn
add column PCT
add column UpperLim
add column LowerLim

/* PLOTS */

draw UpperLim on plot price
draw LowerLim on plot price

close above 1
avg vol(5) above 1000000
avg vol(30) above 1000000
]



luc1grunt
622 posts
msg #54796
Ignore luc1grunt
9/14/2007 5:00:48 PM

I've gotten some great advice from this group (and others) on the same question. After several thousand trades, here's some advice for your present situation:

Re-look the chart and the indicators you are comfortable with and re-determine it's potential.

If absolutely unclear of any fib retrace/S/R levels etc....set a new mental stop in your mind and execute it without fail. This will prevent you from "hoping" it all the way down for additional losses.

Hope that makes the least bit of sense. It has helped my occasional lapses in discipline over time (holding a loser). Been there done that and do it no longer. Execute your planned stops and move on.

Luc

SFMc01
272 posts
msg #54814
Ignore SFMc01
9/15/2007 11:56:30 AM

To: Karenma

CRNT and GES

Thanks for your interest and help

Steve

SFMc01
272 posts
msg #54816
Ignore SFMc01
9/15/2007 12:16:28 PM

To; TheRumpledOne

Thanks for the filters. I will be trying them in the near future. I'll probably go with the Pivot Point one first because I like the "choices" they appear to offer with S1 & S2.

Thanks again.

Steve

karennma
6,386 posts
msg #54818
Ignore karennma
9/15/2007 12:59:57 PM

SFMc:
Looks like they're both going BACK UP.


StockFetcher Forums · General Discussion · When should I take my losses and move on?<< 1 2 >>Post Follow-up

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