posted
I'm going to try to keep this simple, I'm new "6 months" at this trading thing, mostly swing, but some day trades as long as I keep them under 3 per week (in and out the same day) so here's my Question, for some of the seasoned vets, I'm currently holding rshn and gzfx (plus a few others, but not with the same potential)and was wondering how often these stocks come along, I mean, does this happen or is this more like far and few between. The reason I ask is i'm trying to control my greed, I guess i haven't seen this much potential in my 6 months. Hopfully you can understand my dilema and my question.lol. Thanks, jp.
-------------------- I started with nothing, and still have most of it!!!!
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posted
I can only speak from my experience of a little over a year. Big runners do not come along very often. I lost a lot of money when I waited for the home run. Advice most will give you is take profits until you are riding free shares and than leave those free shares in for the home run! Once your principal and a set amount of profits are locked in you don't have to control your greed.
posted
Here is my formula that has worked for me as a newby: Heck I think it's cool that I even have a formula:
take profits at 50% sell if it drops back to buy in price or take principal at 100%(Whichever comes first)
let the rest ride!
Now what you might say is that with my formula you only get 50% profit even though the PPS has risen 100%. This is true but how many stocks rise 100%? I have lost alot of money waiting for that 100%, while watching 50-60% profit go by.
Think about it, if you just take profit at 50%, you are in very good shape. because even if the PPS drops back to buy in, you still make 50% as long as you sell. If it shoots to 100%, even better.
I am not experienced enough to sit and wait for 100%. Maybe someday.
Another rule I am beginning to tinker with is taking profits at the end of the first day of a run. But this post is long enough.
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