The most difficult part about stock trading is when to SELL the stock.
1) If the stock goes higher when do I sell?
2) If the stock is doing nothing or going lower.
When do I sell?
Here is the most critical part of trading and where most of the trading mistakes are made.
Conversation
Nothing I hate seeing more than seeing a big win turn into a mediocre win
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I watched a stock go up 50% then go all the way back to where I bought it. If I would have sold I could have bought back and gotten more/free share and held for the real push. All part of the learning process
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This is definitely the toughest part! Its very rare that I am happy with my selling point. Always either too early or way too late. Waiting too long and giving into the greed usually will burn you, and any profit is good profit so i always tend to sell when I am up a good amount.
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I started taking profits at 10%. I know it sounds small but that's the only way i have been able to survive. I have tried to wait longer and i then i loose everything. As i gain more knowledge and confidence; i will increase my percentage. Now i have to learn when to cut losses
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Maybe buy cheap underlying OTM put options to hedge your gains?
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My biggest mistakes seem to be with stop/loss sell orders. Yea I am making a profit with them, but these orders seem to cost me in the long run by bailing on a lot of money that I could have taken. CCIV is soon to become one of my bigger stop/loss sell mistakes.
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And if the stock keeps going up after your 50% win, so what... catch the next one! Always learning
Cut losses quickly.. you can always buy back in if it's going to go again. Opportunity cost while bagholding is huge. You can score more points (money) when you are playing -not on the bench.
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