I sell a certain % of a stock like vrso because I can become overwieghted. I have been around for a long time so everyone knows my entry point was around 40-50 cents. I 10% of my stock at 4 twice and once at 5. Why?! I wanted to have some of my cash available to buy on the dips, also I protected a portion of my profits while remaining long with most of my postion.
I did buy alittle at 2.95 set 3.65 as exit for a swing trade based on TT. However TT is worthless when the
At the moment I am sitting tight. If the price drops lower I might pick up some more.
Have you been asleep for the last 6 months? While it may not be much of a bull for VRSO, that isn't the case for almost everything else. The DOW, Nasdaq and S&P are all over 20% of their lows. Wakeup!
While everyone has their own trading style that works for them, why would you set a stop that tight in a bull market? In this kind of market you are going to get some wild swings as the market and hopefully your stock moves up.
That stop you set was tighter than my first date in junior high school! lol
You need to have more room for wiggle for a volatile stock like that. THEN have a share amount that is complient with your risk tolerance. IOW...money management.
Depends on your ability to withstand volatility. Most trend traders use a trailing stop just under their favorite moving average. This moving average can vary according to the stock. If the moving average trendline is violated, they cash out.
This rule would have gotten VRSO traders out above $4.
Question for you.
1. When you use trailing stops, how low (what percentage) do you set the stops? I bought SOHU on Jan.2 at $31.01. I set the stop at $32.15 when it went up to around $32.60. But after it dropped to $32.10 and my shares had gone, it went up again. And now SOHU is $37.34.
2. Did you use a stop when buying a stock? How high do you set that stop?
Thanks for your time to answer my question.