wouldn't worry 'bout tweezer tops or any technical analysis with IPT.....It either has the goods,some of the goods or nothing.You just need to figure that out.
OK.....mentioned MAXIMISING PROFITS this week as I deplore general statements of poor knowledge.(Official lie...I don't really care)
So here is the lowdown.
How to exit a trade with the MAXIMUM amount of profit.
First....You will never exit with the maximum theoretical profit on a consistant basis....next to IMPOSSIBLE.So don't get all worked up about not getting out at the top.Instead try and develop a system to take as much as you can.ALWAYS have in the back of your mind a risk/reward scenerio....in other words how much am I prepared to give up in the expectation of what I can make.In time you will develop this skill...often called gut instincts or intuition.(and when I say in time,I mean time usually measured in years).
So you need to last till then.
Luckily there are some techniques you can use develop those instincts and I won't describe them in detail,but simply list them.You will need to do your own research on them.
So,here they are,and hopefully others can CONTRIBUTE over the weekend as exiting is HARDER than buying
>Moving average/s.Simply use a moving average crossover technique in your chosen time frame to measure an exit.
>ATR..Learn how to apply and use an Average True Range as a stop.
>Straight edge trend line...would have worked a treat with PSY this week had you got in early enough.
>Count Back method....an old favorite of Guppy's
>VSA analysis.....a favorite of Mitta3's
>Recognising and acting upon what I call a 'POWER SURGE'.The opposite of a 'PILE DRIVER' low.Similiar to VSA analysis.
>Resistance levels
>Staged exits...taking a bit at a time
>Following with an Auto-stop,a few pips behind the price action
>Pre-determined targets.Normally used with a recognised pattern such as ASCENDING TRIANGLES/PENNANTS/FLAGS.
>History of the stock you are trading.
>Market conditions and whether your stock is in a 'HOT' sector.
>and the last method to use is 'DISCRETIONARY TRADING' which involves gut feeling,experience and practise.
Quite involved,yea!
So next time someone says take profits,understand that they are not describing what a professional trader would do.
