I'm just curious ... for those who might want to share there thoughts on a slow, relaxing sort of day ...
How do you determine your sell price when you purchase a stock. Investor's Business daily has a method that I've never understood. I'm curious what each of you may use.
Part of the reason I ask is that I'm having a difficult time setting a sell price for ELAB. I've already made some nice profits (got in at about a 22 average a few weeks back), but I'm having a tough time figuring out how far I want to ride this one. My current gameplan is the low 30s, but for no real good analytical reason.
Just thought the question might trigger some interesting comment.
Viper, for once the trading gods gave you some instant gratification...lol I say instant, as it only took a month to get into a profitable situation, unlike a couple of other value plays you and I have both had to tread water for months before seeing them turn.
I suspect you would like to build a position that you can hold for a year to get that cap gains benefit. But, if you trade your book twice, two short term gains = one long term one with much less risk. Thus, since you expect this issue to trade to the low $30's, it might be beneficial to set a trailing stop and adjust with price action and time. You can always get back in should your stop kick in, and you let the market define your profits.
I've become very leary of using trailing stops, especially with a relatively thinly traded stock. Just too many "coincidences" in the past, losing shares under strange circumstances. In that case I tend to do virtual trailing stops (try to monitor and pull the plug at a predetermined time, without setting a stop in the system).
With regard to taxes, I put most of my conservative investments in my taxable accounts, and do my trading in my non-taxable IRA accounts. Takes gains and losses out of the equation, and makes tax time a whole lot easier. But there's also an economic benefit ... my bigger gains tend to come in the non-taxable accounts.
I use wisetrade and then there is a fresh cross that indicates a change of market forces. I'll tell you when that happens. If i had wise trade 5 months ago, it would have told me to sell at 42. Right now the lines are perfect with strong upward buying pressure(let this pup run). In my mind, selling into the low 30's, but if they indicate new generic releases into the 30's, it could go higher. stay tuned tony