How long do keep a stock?

Discussion in 'Trading' started by Comptalk, Oct 11, 2006.

  1. When I first started, I used to hold them stupidly to get a real big return. Now, however, I've started buying selective stocks in lots of 500 or 1000 shares. I usually sell when I get a targeted gain.. Sometimes 12%, sometimes a little more. The reasoning, at least, in my thinking is I get a fair return and I am out. Recently it has worked well. But on a few trades I sold at like 20, and a few days later it is at 24. Am I being too conservative?
  2. Whatever gets you into a trade should get you out. In other words, if you wouldn't buy it right now, then you shouldn't hold it.

  3. it depends if it is a momentum goog, cme, appl....when those are just hang on for the ride.....let your winners is sort of a momentum stock....before the last week or so....but since the ipo.....that was a momentum stock.
  4. KS96


    don't get out at targets, just trail your stop
  5. Stop loss orders should be set with volume in mind. If a stock is trading at 100k in volume per day then setting a stop loss order for 10,000 shares will crush the bids. You might end up selling it all for a lot less then you think.
  6. Don't use stop losses anymore. When I used to use them, all had stopped out and then bounced back in the after-noon or next day. I sell now on a percentage basis. I allow a stock to go down as much as 14%, I sell round the same... Depending on the stock. I used to use the 8% average, but it seems a lot of people were using that percentage. Not doing that bad.. Clearing around 14k a month.. Not as much as I would like, but started options again.. I n the + so far. :)
  7. If you're successful I wouldn't mess with your system, but if you want to tweak it a little I would do this.

    When you reach your target take all but 1 or 200 shares off the table and let it ride for a while longer.
  8. dac8555


    one phrase "the trend is your friend until it ends". i use trendlines, when that trend line is broken, i sell. that is on the daily chart.