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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: shasta23 who wrote (8186)	3/30/1998 12:00:00 PM
From: David R. Evans	Read Replies (3) \| Respond to of 12039

Hello Stefan, GREAT QUESTION!!! I wish I had a great answer for you BUT I do not... I'm an Indicator trader so I use them to tell me when to get in and out Most Times. Ex: I like IMG this week. Why? Because my StochRSI (14) just gave me a buy while Andy's StochRSI (8-5) is still long and moving in the right direction. As I look at Dave's New system (DNS), Dahl's Primary Trend (Dahl), and Insync I see all three of them moving in the right direction. Now your question gets to the heart of the matter. When do I SELL? I have always said that the Money is made on the SELL, NOT on the Buy. So, when will I sell IMG? Right now I use a few indicators for my exit. StochRSI (14), MACD (8-17-9), and Optimized parabolic SAR are my primary exits. If I really like the move I might stay past them and watch the longer term one's like Dahl, DNS, and MACD (13-34-89). Now, please remember that I WILL NOT stay in the trade by using the longer-term indicators unless they had turned long WHILE I WAS ALREADY IN THEM!!! What do I mean by this?? Well, in the example of IMG, the three longer-term indicators are already long so once I get a sell from one or more of the shorter-term indicators I would exit. I might not exit on the first indicator's signal BUT I would exit on the second or third's. Did I explain this well enough??? I know the issue of exits seems to be a complicated one BUT, I do not believe it has to be. You use certain signals to get into a trade and you need to use certain signals to get out of the trade. I believe you should know what signals you are going to use to exit BEFORE you get INTO the trade. By knowing your exit signal before the trade you eliminate the EMOTION factor.. Yes, there are times when I will sell a stock just because I "fell" like it has moved to fast to quick. That comes with experience ( or maybe I'm just trying to justify breaking the rules!). I do not suggest this to new traders. Let your indicators tell you what to do. Keep trace of their reliability and if they are not getting the job done, REPLACE THEM!! If they are doing the job, KEEP THEM! Read this post a few times and then reply.... Dave Evans