Each situation is different, in some cases, where my first entry is in the middle of the raneg (like QCOM at $55), I won't get out until it reaches a very well defined support level at $50 (or just under that) and even will double up if it get close to $50 (worked very well the last time), in other cases, when the play is with "falling knives, where I am trying to guess an intermediary trend, I get out as soon as see "bunching" of the ask (whether below or above my buy point). Typically, my "no more pain" point is 10%, but in some volatile issues, I have doubled up at deeper retrenchments as well. You must understand that that specific "style" is for a bear market, when all a long can do is play the bounces, and try and stay out of major declines. In a real bull market, the tactic is quite different.
Zeev |
