How to manage my Trade -Investment or Day/Swing Trade for max profit?

rgdm

Newbie
3 0
OK so I am in a a trade/investment for shares I own (not a spread bet or cfd) which is currently quite profitable with a strong but quite volatile upward trend but I cannot decide whether to :

a) take profits in smaller chunks along the way every day or so as the upward trend continues and allows i.e. cash in before the pullbacks and rebuy the the dips

- this may be difficult as I would have to be be able spot the interim tops before the pullbacks happen and the bottoms of the pullbacks. I am also having to pay the spread each time I move in and out of the market. This would take a lot of monitoring and time and I guess would turn me into a day/swing trader.

OR

b) just leave the trade alone and ride the rollercoaster for a few years until I think it has reached the end of its long trerm upward trend. This may mean I do not make as much profit as I do not benefit in the extra profit made by buying the pullback dips but is easier to do - just sit back and wait?

c) a better option?

I would appreciate anybodys advice or opinion as it always tempting do a) grab the chuncks of profit along the way but I fear this may take more skill and actually result in a lower profits.

Your thoughts please thak you?
 
Last edited:

J Livermore

Active member
122 34
OK so I am in a a trade/investment for shares I own (not a spread bet or cfd) which is currently quite profitable with a strong but quite volatile upward trend but I cannot decide whether to :

a) take profits in smaller chunks along the way every day or so as the upward trend continues and allows i.e. cash in before the pullbacks and rebuy the the dips

- this may be difficult as I would have to be be able spot the interim tops before the pullbacks happen and the bottoms of the pullbacks. I am also having to pay the spread each time I move in and out of the market. This would take a lot of monitoring and time and I guess would turn me into a day/swing trader.

OR

b) just leave the trade alone and ride the rollercoaster for a few years until I think it has reached the end of its long trerm upward trend. This may mean I do not make as much profit as I do not benefit in the extra profit made by buying the pullback dips but is easier to do - just sit back and wait?

c) a better option?

I would appreciate anybodys advice or opinion as it always tempting do a) grab the chuncks of profit along the way but I fear this may take more skill and actually result in a lower profits.

Your thoughts please thak you?
rgdm,

My advice to you is to consider doing both long term trading and short term trading in the same stock (or instrument) if you have the time and trading capital to do both.

In the past I have found that trading both have given me more clarity about whether or not the long term trend still has strength and will stay intact.

If you like both methods it can bring in extra profits doing both at the same time because long term trends can take many months (or years) to bring in any real money.

Make sure you use separate stop losses for your separate positions and remember: When it’s time to get out of one method you can still try to hold on for profits for the other until it’s time to get out of that one too.

Good luck
 

ffsear

Senior member
2,158 439
You must stick to your plan. And part of you plan should be having a profit target before you even enter a trade and know what you will do when it gets hit.

Personally I take 1/2 my position off when target area is hit. Then i leave the other half to run with a trailing stop
 

Nuadarne

Member
94 11
I believe that the most important thing in this work is to control every step of the market (regardless of the strategy used and regardless of your view on the market). Something unexpected can always happen here, and that's why you have to be prepared for the fact that you have to change your action plan urgently. Of course, as my colleague has already indicated, the presence of stop-loss and take profit can greatly facilitate your work and your control. But sometimes a trader has to change his approach radically or make a new decision already during a trading session. Never be overconfident, because as soon as you start thinking that the market is easy and affordable, the market will swallow you and your capital.
 
 
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