Welcome to The Ultimate Trading Guide
Stock Trading Secrets Article
This is a selection made from among articles on Stock Trading Secrets. For a permanent link to this article, or to bookmark it for future reading, click here.
Successful Trading – Taking Profits - Part 1
from: Chuck CoxSo you’re started trading, you bought some positions with your online broker, you’ve set some reasonable stop-losses to protect your account and all of a sudden one of your positions move strongly in your favor – so what do you do now? This my friend, is probably the hardest situation to deal with in trading the market – believe it or not.
Do you take profits? Do you hold on for more profits? Do you take partial profits? There is no textbook answer to these questions as it depends on your trading objective. That’s why you need to determine your objective BEFORE you start trading. No matter what you do, there will be regrets if you trade long enough. If you decide to take profits, there will be times when the market makes a huge move without you, if you decide to hold on for more profits, there will be times when you’ll lose the profits you had. However, the important thing is that you decide on your objective and stick to it no matter what happens.
With that said, let’s discuss some profit taking options that you might consider.
When you’ve bought your stock, option or commodity and then placed your stop, you must first try to prevent that position from losing money. We recommend that you move your stop right along with the price movement. In other words, if your stop is placed one point below your purchase price and your stock moves up one point, then we recommend you move your stop up to your purchase price. After doing this, you now have a scratch trade at the very least and the position poses virtually no risk to your account – only “gap downs” at market opens can hurt you. And of course, the golden rule with using stops is that they can only be moved up and must NEVER be moved down.
About the Author
Chuck Cox is a Technical Writer and Industrial Scientist by professional with a background in statistics. He has used mathematical and statistical methods to invest and trade in the stock, futures, and options markets. Chuck has owned various businesses and presently operates several websites. To learn more about trading the markets, visit his website, http://www.earncashathometoday.com/trading-stocks.htm
 |
 |
Stock Trading Secrets News
Q&A: US carmakers bailout - BBC Business
The bosses of America's top three automotive firms - General Motors (GM), Ford and Chrysler - have called on the government to throw them a $25bn lifeline. We explain why the trio have called for the bail-out. But why should three giants of industry ...
Read more...Athletes' cold-weather secrets - TradingMarkets.com
For instance, Lee Walker, manager of The Spin Cycle in Cary, immediately recommends the Pearl Izumi Gavia jacket for cold-weather rides. With just a thin base layer underneath, this high-tech heating system -- made of MicroSensor-Thermal fabric ...
Read more...If market is going south, we’ll run other way with your money - Odessa American Online
Welcome to Bankruptcy R Us, where we offer all the advice you need to become an unqualified success and a multimillionaire. Alas, we also have tips in our inventory that will enable you to become a homeless person destined to scratch out a living ...
Read more...Local learned rules of success on football field - TradingMarkets.com
Beck credits his success in life to strategies he learned in the locker room and applied on the playing field. Beck was captain of his high school football team and played college ball at Defiance College and the University of Cincinnati, where he ...
Read more...Random Thoughts: Banks Have Backs To Wall - MSN MoneyCentral
Baidu.com Inc ( BIDU ) Stock Quote , Chart , News , Add to Watchlist I enter today's fray with a flattish book and some smallish energy exposure ( DXO ). I nibbled on a starter position in Research in Motion (RIMM) although it's admittedly edgeless ...
Read more...