The issue of when to sell a winner is a good dilemma for a trader to have. From a theoretical standpoint, there would be nothing wrong with letting your winners run within the broad context of a trending bull market, in order to buttress your trading prowess. Seeing as the current broad market has been resilient in terms of moving higher in the face of mixed earnings and headline risks, I am encouraged by what I see. However, I am not prepared, just yet, to declare that a brand new bull run has commenced.
Thus, I am still inclined to have a quick trigger finger. I have not sold out of them yet, but when I see that some of my holdings are up five days in a row, I have little interest in being cute here, by letting them run forever.
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Good wisdom, Chess.
I’m forever wrestling with the thorny problem of when to bail. Personal favorite lesson circa 2009 : up 300-400% in calls the day before op expiration just to watch the MMs take it down to near nothing on OPEX. Pure rookie move on my part – fear, greed, and no exit plan. Ah well, as the saying goes, Live and L… What’s that word again? Rhymes with “burn” 🙂
IX
Yup–whatever doesn’t kill you make you stronger.
I’m trading in my IRA, thus I cannot sell anything until 3 days after purchase. Holding only the last third of my UWM, I expect it to move sideways before it drops significantly. Should it behave unexpectedly before I can sell it, I would buy its inverse, TWM, to halt further losses.
In your case, would you sell or would you buy a hedge and why?
more of an instinct kind of decision for me–depends on how volatile the market is
nice trading, pro! i really hate i missed that ARUN…
plenty of other juicy setups–especially if we get a light pulback
Kicked most of my longs today – decent gains, but not what I wanted/anticipated.
Thanks for putting me on your recommended sites Chess, means a ton to me!!
No prob bro–you earned it.