Must you always have a get out price?
Okay i have been trading for over a year, every bit of advice I have gotten from people, has been the same.
When I buy a share, I MUST have a get out price and I MUST always stick to it, no matter what.
Is their an exception to a rule? My first ten months of trading were horrible, the last two months, things have picked up. I have a share that I haven't had for long, that is nearing my get out price.
Every indicator is saying, that it will past my get our price, am I suppose to break the golden rule and not sell, or do i stick to the "get our price".
Use it as a learning experience!!!
Take out half of your position at your predetermined price.
Then let your other half run up using a trailing stop using previous support levels and your chosen indicators to take out the remainder.
This method ensures that you let profits run and at worst have a small gain or break even.
How to limit your profits!
Brett, you have received some very bad advice, resulting in your using a counterproductive and bogus "Golden Rule".
Try this one :- Cut your losses and let your profits run.
It is very easy to lose money on the sharemarket. All you have to do is reverse this rule. Cut (limit) your profits and let your losses run. Sell your winners and hang on to your losers. That way you will automatically end up with a self-selected portfolio of underperforming stocks.
Setting price targets limits your profits. Why would you want to do that? You haven't told us how you set your "get-out" prices, but they can only be guesses. When we buy a stock we can never know how far it will go. We can only take what the market gives us. Why would you want to create your own artificial constraints? Why terminate a trade simply because you have made 20%, 50% or any other arbitrary amount? Do so, and you will never, ever know the joys of doubling your money on a stock - or better. If you are the sort of person that likes rules, here are a couple for your consideration :-
(1) Never buy a stock that is in a downtrend.
(2) Never sell a stock that is in an uptrend.
I have a share that I haven't had for long, that is nearing my get-out price. Every indicator is saying that it will pass my get-out price, am I supposed to break the golden rule and not sell, or do I stick to the "get our price".
Brett, don't break your "golden rule"........
DITCH IT ALTOGETHER!