How To Sell/Selling Rules?

Discussion in 'Professional Trading' started by pdwst33, Apr 27, 2007.

  1. pdwst33


    I find I'm pretty good at limiting losses when something doesn't go my way, but that's about it. Does anyone have any selling rules they'd like to share or are there any good books out there? Obviously I'm not trying to sell the tops in anything, but I find myself not having a battle plan for many of my positions when they move a) Moreso than I expected and b) In a time frame much shorter than what I expected. That's where my the line gets blurred between my short term trade and longer term holding, and I find myself acting irrationally even though I may even be making money. Thanks
  2. pdwst33


    I guess I shouldn't be surprised at the lack of responses. That must be why there are thousands of books on how to buy stocks but none that I know of on how to sell lol :)
  3. =================
    It Varies;
    especially when in a bear market, in which we are not.

    Best to have a well researched battle plan, quite different from ''blurred lines'';
    plan before the battle,
    looking at all the data helps.

  4. Depends on your setups.

    I have this one great setup. It's really simple, I place it below swing lows on the uptrend when viewing the 30m chart. Or I could place it below the previous day's low. But everyone pretty much knows these two rules, everyone uses them.

    I have another where I get out if the voume exceeds the average volume by 1.5X.

    Sell Rules are easier with more market experience, you know where to place your stops. Also, I never get out on a whim. I always let a rule or stop take me out.. have a plan and trade it.
  5. trailing stop
  6. pdwst33


    Excellent advice, thanks, I appreciate that. Okay, so you take profits in something with a trailing stop and the stock then goes lower, but after a few days starts to rebound and you want to buy it again, perhaps for the same reasons you were long in the first place. There have been times where I will put a buy stop order in right after I close out the position, so that I don't become a deer in the headlights and freeze up the next time the stock swings up there. Is this a sensible way to do things? Any thoughts on that? Thanks