My worst decision this week.....

[*JDR*]

I like to trade BSC and have been doing so fairly successfully.

On Tuesday I had 200 BSC at $70.5 - I decided to sell them at $72.5!! (they are now $87)

Will I ever learn to let my winners run!?

 

[fungbenjamin]

JDR,

When you invest in a company, you must estimate and judge its intrinsic value- if the market price is significantly lower than it, then you should buy it. Afterwards, you should constantly observe the changes in the company's intrinsic value. When you think that the market price fully reflects the intrinsic value, then you should sell the shares. Even if the market price rise a lot after your selling, you should not be down-hearted- realise that the stock is now unstable and may plummet one day. Think, and research, and buy stocks for another company during this time- you may make more!

Yours sincerely,
Ben.

 

[shadowninja]

I like to trade BSC and have been doing so fairly successfully.

On Tuesday I had 200 BSC at $70.5 - I decided to sell them at $72.5!! (they are now $87)

Will I ever learn to let my winners run!?

Try this method.
1) Open a position
2) Assuming you're right, it climbs a bit (if it doesn't exit with stop loss)
3) At the point you start thinking, "Hm, should I take the money out?" close half the position and move the stop to breakeven.
4) Let the other half run. It will either fall back to B/E and hit the stop (you win 50%) or it will go on to make even more profit and you just move the stop up to account for noise or below higher lows or below support lines etc.

When I stop pissing about through boredom, this method does earn extra pips on FX.

 

[*JDR*]

Good advice Ninja.... been doing that today with other positions.

 

[shadowninja]

Me, too. Sometimes it works (great). Other times it doesn't (oh, well!). Can't remember which author said he did this.

 

[philo]

Try this method.
1) Open a position
2) Assuming you're right, it climbs a bit (if it doesn't exit with stop loss)
3) At the point you start thinking, "Hm, should I take the money out?" close half the position and move the stop to breakeven.
4) Let the other half run. It will either fall back to B/E and hit the stop (you win 50%) or it will go on to make even more profit and you just move the stop up to account for noise or below higher lows or below support lines etc.

When I stop pissing about through boredom, this method does earn extra pips on FX.

I am in the same camp, of not knowing when to let winners run. This is a skill that I am still learning but getting better slowly at.

Thanks ShadowNinja for posting some good tips regarding the subject, will take it and try to apply it on next trade. :smart:

 

[mkwilliams]

just remember no one loses money by taking a profit. learn from the experience and enjoy that cash.

edit: sorry about bumping this, didnt realize how old it was.

 

[foredog]

IS BSC Bear Stears?

If so, good sale at $72! Now you'd be lucky to have a total of $72 left!

 

[mkwilliams]

yeah it is bear stearns. you gotta feel bad for all the people that bought it right before the liquidity problems. i'm looking for the shareholders to reject JPM's bid, i mean $2/share? their office in NYC is worth more than that!