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I wonder if people could comment on profit stops. It seems that I buy
stocks, the price increases, and then they fall down and I lose most of my
profits. Is it best to stick with a trailing stop or should a certain profit
% be used to take profits? What profit stop should be used?
Neo, I like to use stops and profit objectives that are measured in units of
Average True Range. The ATR contracts and expands with volatility so you can
use the same formula for a very quiet stock or for a highly volatile stock.
I have written several educational Bulletins about this topic that can be
found at http://www.traderclub.com/discus/board.html
These Bulletins are free so hope you don't think I'm spamming. Just trying to
be helpful.
Chuck LeBeau
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