FLACK, thanks for the post on exit strategies.
I once asked you a similar question a couple of years ago, and your answer was exactly the same - it shows that you were doing something correct then, and you still are ;~). Like the market, your exits are "dynamic" and depend on many factors that may change from day to day.
But on the issue of exits by people who are giving a particular recommendation, I was instead thinking more about stop-loss exits. I meant that I felt the writer should mention some kind of hard and fast "point of no return" type exit, such as "this pick is out the window if it falls below the support level of 26 from March" or "this pick is based on its current uptrend, so if it falls much below the weekly trendline from the October advance, I'd sell." Exits like this help to let the reader have a clearer idea of where the writer's coming from, and help to complete the picture of the particular trade.
Even if the person making the recommendation is basing his pick on FA, he should have some kind of exit in mind. This type of picker usually looks for some kind of significant change in the company or the way it operates, such as a large decline in the sales of their superwidgets or whatever. But IMO those pickers should state some kind of standing rule on exits such as a percentage stop loss, even if it's a wide one like 25%.
And the legal biz is doing great; thanks for asking. That's part of the reason I have little time to daytrade anymore. <g/ng> |
