Jan,
Thank you for the kind comment, and please know that you have been more help to me than you'll ever know.
Now I need to ask a trading question of you and others on the thread.
I want to take a hypothetical stock, ABC, that is trading at 24 1/2. It has a price objective of 40, a trading stop of 22, and the BSL break would come at 20. I decide to buy the stock at 24 1/2, because I like the risk/reward. The sector is good, the RS is in Xs.
I watch ABC go up to 26 3/8 intraday a day or two later, and now, it has come back down to 23 1/4. A trading position which had gone positive, is now negative in my trading portfolio.
Here is my question: Should I have stopped myself out of this trade above my entry point of 24 1/2, so as not to let a winner turn into a loser, or should I let the trade continue since the original trade stop of 22 has not been hit ?
This kind of issue has always plagued me lately, and in an effort to be more mechanical (and less emotional), I'd love some input to see what kind of a rule I can make for these kind of situations.
Thank you all for any input you can provide.
David |
