DAYTRADING Fundamentals Message Board

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Strategies & Market Trends : DAYTRADING Fundamentals

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To: Kevin who wrote (961)	6/18/1999 6:38:00 AM
From: Eric P	Read Replies (1) of 18137

What i don't get is if you are trading a trend why assign a certain % gain to sell after. Why not what for the next sell signal? Although some people do use a "profit objective" in their trading plan, this is entirely optional. There is not reason you cannot wait until you get a sell signal in order to exit. You should, however, always have a stop loss built into your trading plan for risk control. Also, always honor your stop loss, DO NOT "wait just a little longer". After trading your plan for some time, you might realize that although your profitable trades typically rising 1 1/2 to 2 points (for example), your average closed profit is only 1/2 point. If you notice something like this, you may decide to build a profit objective into your trading plan to sell stocks after a 1 1/2 point gain (or XX% gain). Here again, the key is that it is your trading plan. You need to develop something you are comfortable with. Then follow the plan. -Eric

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