Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (13) | Ignore Thread Prev Thread | Next Thread
Author: AlfaSunshine Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 36696  
Subject: Short question on long exits. Date: 5/20/2001 10:10 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
At this point in my trading experience I am only taking long positions. I have set exit prices at a certain percentage that I would like to get. My question is: is it better just to stay in long and set a new exit price when/if I get there or to sell, take profits and buy a new position if it is still in my buy range? My math thinking skills are trial and error oriented and I'd rather hear from someone elses experiences at this point.
Print the post Back To Top
Author: berkmberk1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2106 of 36696
Subject: Re: Short question on long exits. Date: 5/20/2001 10:43 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
My system is to set an exit price, usually $50, or 5-10% plus side and stick to it (I trade small ie 100-300 sh of a $10-$15 stock). If the chart research warrants/indicates that the stock is on a good run, I'll watch it closely and maybe adjust the exit up...if there is any doubt, I would rather exit with a small profit and keep an eye on it for possible repurchase or select another candidate....like I learned here, there is nothing more helpful than the charts...read em and believe em...get in and get out....not meaning that there aren't LTBH opportunities out there...only nothing viable for me right now with the capital I have to invest....using the trading to build my stake...

Mike



Print the post Back To Top
Author: AverageJo Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2107 of 36696
Subject: Re: Short question on long exits. Date: 5/20/2001 10:48 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
"is it better just to stay in long and set a new exit price when/if I get there or to sell, take profits and buy a new position if it is still in my buy range?

If a stock in my ST port had met its projected exit point and after reviewing its current behavior I feel that it's going to continue its rise, I may indeed set a new exit point and consider it a newly entered trade but I'll watch it closely and set trailing stops. That's my way, but you should let your own goals, expectations and trading style be your primary guide.

~jscott

Print the post Back To Top
Author: AlfaSunshine Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2108 of 36696
Subject: Re: Short question on long exits. Date: 5/21/2001 12:02 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Thanks for your input. I am working with very very little money. I guess it is really at a hobby level at the moment. I've tried to catch these picks below the $10/share range. The two that I have the most of do not add up to too much more than 100 shares. I think that I am going to pretty much decide to ride all of them until they get to my exit prices and then regroup and try another strategy building what I'm learning as I go.

Print the post Back To Top
Author: MVgirl Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2109 of 36696
Subject: Re: Short question on long exits. Date: 5/21/2001 9:12 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
You seem in my boat. I answered over on the Den.

Print the post Back To Top
Author: alcear Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2111 of 36696
Subject: Re: Short question on long exits. Date: 5/21/2001 9:53 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
alfasunshine,if your stock is moving in the right direction just move your stops up.let your winners run.why take 5% when you may get 50%?

Print the post Back To Top
Author: Calabogie Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2140 of 36696
Subject: Re: Short question on long exits. Date: 5/21/2001 11:10 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0

Hey Alfa and welcome to the board. Thanks for posting.

I do not play shorts, only longs so I know where you're coming from in that respect. Having said that, buying a stock and simply setting a limit at which you think is a good profit is just not short-term trading. ST traders plan for the worst which is why we preach stop-loss all the time. We buy a stock, based on our own DD then we set a stop-loss so if the stock goes down from our buyin we limit our losses (the first major rule of short-term trading.)

Once the stock moves above our buyin, we start setting trailing stops to preserve profits (the second major rule of short-term trading.)

Whether to buy back in to the same stock or not depends on what the stock is doing and why. It also depends on the company behind the stock to some degree (much more so than DT'ing IMHO) and is a decision that has to be made at that time.

Hope this helps some but if you have more questions feel free to ask here. We've got a lot of great people on this board and everyone is willing to help which is why most of us like it so much.

Print the post Back To Top
Author: Calabogie Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2142 of 36696
Subject: Re: Short question on long exits. Date: 5/21/2001 11:12 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0

Hey Carolyn! Welcome to the board and thanks for posting! Come on back when you get the chance.

Print the post Back To Top
Author: Calabogie Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2143 of 36696
Subject: Re: Short question on long exits. Date: 5/21/2001 11:14 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0

alfasunshine,if your stock is moving in the right direction just move your stops up.let your winners run.why take 5% when you may get 50%?

HEAR HEAR!! I was going to post that exact response later on Doug. Thanks for beating me to it. :) ST trading is about minimizing losses and maximizing profits. If you set an exit price and jump out when the stock hits that price, what happens if it keeps going up? You've missed out on what could have been a much better profit.

That's why we talk about trailing stops so much. Don't set an exit price, just keep moving up those trailing stops and maximize your profits. If you get stopped out and it starts up again, so be it but at least you made the best of it.

Print the post Back To Top
Author: AlfaSunshine Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2148 of 36696
Subject: Re: Short question on long exits. Date: 5/21/2001 11:26 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
"why stop at %5 when you can have 50%"

You make a great point. Which is sort of why I asked the question. And I definately have to take it into consideration. But I don't have tolerance for all that resistence and back treading stuff. If I decide to have a long-term set that will be different. I expect one or two of the current pix to get to my target in the next week or two. I'll probably have a new strategy by then.

Print the post Back To Top
Author: AlfaSunshine Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2151 of 36696
Subject: Re: Short question on long exits. Date: 5/21/2001 11:31 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
<< We buy a stock, based on our own DD then we set a stop-loss so if the stock goes down from our buyin we limit our losses (the first major rule of short-term trading.)

Once the stock moves above our buyin, we start setting trailing stops to preserve profits (the second major rule of short-term trading.>>

I guess, without having the terminology quite as you are putting it, I am setting limits. I consider my current pix short term because I expect them to be at the profit level I set within a month or two of purchasing them. That is about all the ups and downs and back arounds I can tolerate.


Print the post Back To Top
Author: MVgirl Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2166 of 36696
Subject: Re: Short question on long exits. Date: 5/21/2001 1:00 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Calabogie,

Opps, Thought I'd just sneek an answer in here. Thanks for the Welcome.


You say,

"ST traders plan for the worst which is why we preach stop-loss all the time. We buy a stock, based on our own DD then we set a stop-loss so if the stock goes down from our buyin we limit our losses (the first major rule of short-term trading.)

Once the stock moves above our buyin, we start setting trailing stops to preserve profits (the second major rule of short-term trading.)"

Sounds like "We" (Alfasunshine & I)are both working w/ out the safety of stops. VERY SCARY. But the very small amounts cash to work w/ forces me too at this point. Hope to get to a money level for easyly covering the $20 in/out of Datek.

So I lurk & learn here.

CJP



Print the post Back To Top
Author: Calabogie Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2190 of 36696
Subject: Re: Short question on long exits. Date: 5/21/2001 3:58 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0

But the very small amounts cash to work w/ forces me too at this point. Hope to get to a money level for easyly covering the $20 in/out of Datek.

Even with small amounts of cash stops can be very useful. It's just a matter of adjusting them according to your risk tolerance and your possible cash loss. If you have 1000 shares of a $10.00 stock and you set a stop-loss at $9.50, your risk is $500.00 but if you have 100 shares of a $10.00 stock and you set the same stop-loss your risk is only $50.00. Even smaller lots like 50 shares of a $10.00 stock reduces your risk to $25.00 (all plus commissions of course.)

The placement of the stop-loss should take into consideration the number of shares you have at what cost. That allows you to still safeguard yourself with stops even at lower cost points.

Just my opinion though. I've been in the same boat. :) Glad to see you posting and I hope you do it more. Everyone learns from good posts and even more so with new traders. New traders ask questions that more experienced traders may not have thought of or ever encountered which makes us all think.

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (13) | Ignore Thread Prev Thread | Next Thread
Advertisement