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Strategies & Market Trends : The Market Taught Me That......

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To: freeus who wrote (27)11/6/1997 1:26:00 AM
From: Richard Estes  Read Replies (1) of 151
 
After a profit is tied in of substantial nature. loosen up on stops. they can be placed at key points like under key support. all stocks don't go up forever. In fact, splits can cause a fall in price. since you have double the stock, you lose double the money. It is all %s.

With $10-25 comissions, you can renter the stock if an appropriate point comes like a breakout of a short base. SMOD was there for you. if you have a system or a plan, it will provide entry and exit points.

For example you might say, I will buy when price crosses up thru a 89 ema, and sell when it crosses down. Then do that. The stock is selling below the average of the last 89 trading days, do you want to be in it? The choice of your measure should be based on your mindset. You must learn to trust it. You do that by testing the system on many stocks across history with the varied cycles of the market present.
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