Short Profit Taking & Re-entry

Discussion in 'Technical Analysis' started by bob2007, Apr 11, 2018.

  1. bob2007

    bob2007

    What type of TA should I consider for re-entry?

    I think a stock will go from 100 to 50.

    1. I am long term short a stock, but as experience has told me I have to take profits.
    2. I take a profit i.e. 100 moves down to 80, I pick an intraday cover point.
    3. I am looking for a re-entry short. But often I short and it's the wrong spot and stock goes up 10%.
     
  2. tommcginnis

    tommcginnis

    You shouldn't consider re-entry.
    You should look around for a fresh deal --
    you should look for a new trade --
    same as if the whole market-trading-board were wiped clean.

    If you *know* something about a particular stock
    (let's say you just ended a 1-week study of it, and had just exited a short position { :rolleyes: }
    and felt better informed on it and its recent excursion downward..... than on other choices.
    That should *still* be an outcome of a de'novo evaluation, informed by what had just happened.

    "Don't be married...." (to a stock or a position) and all that.

    FWIW, though: if I thought a $100 stock had been worth $50? And had shorted it? And had just taken profit at $75??? I would be a lot less interested in shorting that stock: it's only got half the overage it held before. If $100 were a strain, then $75 would be a lot less of a strain, and I would NOT be interested in a short. (Think about TSLA ~$300. Next week, it could be $268. Or, $368. "Nope!")
     
  3. bob2007

    bob2007

    Thanks for your answer and I think it's a good one.

    I hadn't thought of the risk reward has changed.
     
    tommcginnis likes this.
  4. qxr1011

    qxr1011


    one definitely can enter and re-enter position many times while stock is trending down or up,

    and you can combine that with reversing the position each time !

    but this is something akin to a trading aerobatics :) ,

    and to do that is a matter of having very efficient trading method and being an extremely capable trader- not something you will be explained or given here or anywhere else....

    consider concentrating on S/R, that is all i will say
     
    Last edited: Apr 11, 2018