Hi Herc, here's what I do even though I know it's probably not what most folks do. I've gone from over complicating the TA to over simplifying, but for now this works for me.
I buy approximately the same dollar amount regardless of the share price. I use QCHARTS, so I set an alarm at 5% below the buy price, one at 5% above the buy price and one at 10% above the buy price. If it hits the 5% below, I'm gone. At the 5% above I go over the charts checking the moving averages and general trending of the stock and let it run. After 5% up I keep real close check on the MA'S and on any strong weakness, I'll get out and not worry about getting the 10% up. If it gets to +10% I'll sell on ANY weakness. If it keeps trending up, I'll stay with it even if it takes 2-3 days, but after 3 days, I usually sell regardless of profit. Right now I'm working off of 10 minute charts, I used to work from the 5 min, but got whipsawed out so much I'm trying 10min now and it seems to be working better for me. I'm also using 13,35,90 for my moving averages instead of the 10,20,50 200 that a lot of folks use. If I've held for a few days, and it falls through the 35 day MA, I sell and take whatever profit is there. Of course, if it turns south at any time, regardless of profit I'm out to protect my principle. Obviously I'm more of a swing trader most of the time. Hope this at least gives you something to think about.
RCS |
