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I think the key to answering the question of when to get out is what we
have learned (education) about being a successful traders and then
continuing to learn. With the emphasis on our individual styles. For me
I find it easier to decide when to short a stock ( my style). Or put in
another way I know when the longs want to get out (going long as most
traders style). I have a heck of a time on the long side. Which most
traders find easy to do. However I am slowly starting to put together
some strategies and EXPERIENCE for going long. (Continuing to educate
myself using my own style.).
The pointing I am trying to make is that if you bite the bullet and
force yourself to learn how to short a stock, you will find some answers
to the question of "when do I get out".
Harley
Pete Hallock wrote:
> ramon wrote:
> >
> > Hi Pete
> >
> >
>
>
> > This is a good post.
> >
> > I'd one more element to the trading plan:-
> >
> > Management of the trade once we are in.
> >
> > In a sense getting in is easier than.....
> >
> > .... knowing what to do once we are in a trade
> > and it is moving in our favour. We are faced constantly
> > with the question:
> >
> > "do I get out here or does this trade have much further
> > to go."
> >
> > We usually perceive this question to be even more
> > important if we are 1 lot traders.
> >
> > For me what is important is to formulate a strategy
> > and then to apply it consistently; this is especially true for
> > the 1 lot trader. If our strategy is to take profits a
> > a certain level, and we miss some "blue sky" profits, we'll
> > make that up on the occasions that we'd have been stopped out
> > had we not taken profits. The reverse is also true.
> >
> > > That's it. No big deal. Let's all just get out there and do it.
> >
> > Ah but that's the rub. I like to say that trading is simple but not
> > easy. It's simple because the roadmap to success is clearly laid
> > out; it's not easy because following that map is difficult. It's
> difficult
> > because winning psychological paradigms are acquired in a ways that
> run
> > contrary to the practices to which we have been accustomed.
> >
> > regards
> >
> > ray
> >
> > R Barros
> > 101/25 Market Street
> > Sydney NSW 2000
> > Australia
> >
> > Voice: 61 2 92673470
> > Fax: 61 2 92673478
> > E-Mail: rbarros@xxxxxxxxxxxxxxxxxx
>
> Ray,
>
> I couldn't agree with you more. The part about one lot traders and
> leaving "blue sky" profits on the table was great but the best part
> was
> when you reminded us of those times that we would have been stopped
> out
> with a loss had we not taken the profit.
>
> Too bad getting out of a trade isn't as simple as getting in!
>
> Pete
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