Should you bring home your profits on days like today?

Discussion in 'Trading' started by smcoder, Nov 9, 2020.

  1. %%
    Good question smcoder/really depends on the market+ trading/investing plan/notebook.
    Say someone has 7 positions+ you like to get paid weekly more of less+ usually prefer pay later in week/ later in the week.
    BUT with UPRO up about 10%+SPXS down [-10% more or less].
    YES+ resting orders may help.
    While its a good question/4th + 1st quarter tend to do so well; I never confuse a temp situation with value., or a predict good trend Hope this helps/ it helped me...………………………………………………………………… 10:07 CST
     
    #11     Nov 9, 2020
  2. smcoder

    smcoder

    I believe the question here is not have a plan but having a good plan and a good plan is made up of rules you define and refine over time thru wins and losses. So I was trying to understand should there be a rule that says "if the stock market is overbought and some news or event causes the usual bulls hysteria should you take profit on those stocks that made a large (double digit) one day jump?". In fact, should you take profit in the first 10 minutes when hysteria is maximum and usually gain traces back over the day? Let's talk for example of chevron, in the first few minutes of open market today it got to I believe 18% gain and now it is trading just above 10%.


    Thanks,
    sm
     
    Last edited: Nov 9, 2020
    #12     Nov 9, 2020
    murray t turtle likes this.
  3. deaddog

    deaddog

    What is the downside if you take profits?
     
    #13     Nov 9, 2020
    murray t turtle likes this.
  4. smcoder

    smcoder


    Hello @angrytrader, not unexpected gains, I'm simply trying to refine my trading plan and clearly I'm trying as everyone to gain from the ups and downs of the stock market. I'm always tempted of taking some profit especially when there are large gains in a single day that I know will usually trace back even during that same single day. As always the worry is that the gain might not trace back and that you might not have another good entry moment........usual old story


    Thanks,
    sm
     
    #14     Nov 9, 2020
    murray t turtle likes this.
  5. smcoder

    smcoder

    Not having another good moment to enter?

    Thanks,
    sm
     
    #15     Nov 9, 2020
    DDR likes this.
  6. %%
    I'll use an extreme but true example+ may not help as much as my earlier post.
    SOXS made about 44% from close to close day[one total day].
    The downside of that, especially if you have a 52 week chart, is take profits+ find something else to trade, because a good plan can be changed some. LOL/true.
    A 44% gain or any gain like that can be a 44% loss also.
     
    #16     Nov 9, 2020
  7. deaddog

    deaddog

    OK then what is the downside if you hold.

    What is your main objective when you opened this position?
     
    #17     Nov 9, 2020
  8. wrbtrader

    wrbtrader

    I thought he was talking about "investments" because he used the word "invested" in his initial message post.

    Now it seems like he's talking about trades or at least swing trades as in "short term trades".

    wrbtrader
     
    #18     Nov 9, 2020
  9. smcoder

    smcoder

    Well, if and when this whole pandemic comes under control or is defeated economy and oil consumption will get back to "normal" (if normal exists) and with this also oil price.

    Thanks,
    sm
     
    #19     Nov 9, 2020
  10. smcoder

    smcoder

    Good point @wrbtrader, investing, trading, what is the difference? Frequency of trades? In the end the goal is always for everyone, earn a profit. It takes a week, it take 5 years, does it make much difference?

    Thanks,
    sm
     
    #20     Nov 9, 2020
    murray t turtle likes this.