PJH it sounds like you are getting the gains but letting them...

  1. 2,856 Posts.
    lightbulb Created with Sketch. 649
    PJH it sounds like you are getting the gains but letting them slip through your fingers. You need a strategy to hold onto your gains and not let a winner turn into a loser. Selling at one bag is a step forward, but you still might not be making the most profitable choice.

    If you review your past trades and group them by maximum gains, this may give you some insight as to where the best selling point was for the median trade.

    If you are really keen on exiting on one bag, then I would suggest implementing a trailing stop at that point, so you still have all the upside if it continues to run, but your downside is limited. 20-50% might be appropriate for spec stocks, but you have to find the optimum number yourself. You might even consider selling half upon one bagging and letting the other half run with a stop.

    The more trades you have in your trading diary, the easier it is to see the patterns that form and take the appropriate action.
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.