Exit Strategies (continued) Collated by Aljini Poster: TheArchitect Date: 17/06/16 Time: 23:26:59 Post #: 18062082 What exit strategies people use? Do you set targets and if so how do you set your targets? Do you always sell when target is reached? Depending on the stock and on my investment strategy for that stock, some stocks I go in for the quick short term trade, for those stocks it's based on the set target which can vary on the stock, generally I like to make at least $1k-$5k on each trading parcel which is usually minimum $10k each parcel and up to $100k, so depending on the stock and how confident I am in it, sometimes I will take the $1k quickly straight off but depends what the charts are saying, if the chart looks good I will leave it to run a little more and then sell once it's made a little more. This will also be on stocks I've not been able to do major in depth research into, with those stocks it's even more important that I take the $1k-$5k profit quickly and I don't worry if it continues to run, if it does I'll research more in it and look to take a stronger position and look for a good entry based on technicals.
Part of my exit strategy is having trading parcels along side longer term holdings, when I really like a stock I'll invest quite heavily in it, but I'll also create multiple trading parcels to trade the trend. These parcels will have set targets of making minimum 20% or $1k-$5k profit and I will usually stick to those targets and sell, this is also combined with TA but the TA helps with my entry and also understanding how quick or realistic a target can be in the short term. I had mentioned on the SRT thread my success with this strategy, being able to sell SRT 140 times in trading parcels over 7 months (280 overall trades;buy/sell) making on average $3k per trade (some were $1k but some were over $5k) got a lot of stick for that on the thread and resulted in me having to post up proof of those trades. So by sticking to my targets and sell strategy noted above (20%/$1k-$5k profit targets) I was able to do this with SRT and have done this on other stocks.
There's no specific signal, although on XPE I recently sold my entire position of close to 9m heads in the 10-10.5c range as it twice tried to breach 11c and failed, the MACD was turning and crossing over at the top of the hill, EMA and MA was turning and about to cross, lots of red candles, and just too many trading days of trying to break through resistance at 10.5/11c and just not getting there, low volume at those levels. Once I saw that I sold my entire position which I was already roughly 750% in profits on and will wait to re-enter XPE in the 6c range.
Sell or hold on news? Depends on the news and also how much the stock has run up before hand, I'll wait to see what the news is or if I know what it is then depends on how market reacts to the news, if I have trading parcels I'll set some parcels in the sell side which usually get taken out on release of the news, that way I at least take some profits, but again depends on the stock and on my strategy for that stock and on the news. But if the stock has already had a major run and is overbought then quite likely would sell on the news or at least soon after, sometimes wait and see how the market will react, might run more or it might fall and you sell at a lower price still making profits, but again all depends on circumstance.
Depending on the news and the stock I sometimes buy on news. SRT I know more news will be flowing upon re-listing, I still have trading parcels therefore some of those will be let go when re-listed at rough target prices I already have mentally set, but will otherwise hold through most news unless it's bad news which then I'd be selling like most others.
Are there certain times of the day which are better suited to selling? Morning is always good, early-mid week, don't have a real specific time, I usually will sell when I need to/choose to based on the trading behavior of the stock. Morning rush is good as you sometimes get those spikes and the late arvo as well if you're wanting to sell.
Do you use trailing stops for timing when to sell? I never use actual stop losses anymore, was stopped out of some stocks in the past that then ended up going for a run right after it hit my stop, didn't drop lower hit right on my stop on each stock and then I ended up chasing, still made money in the end but was very annoying. I now use mental stops and I try get into stocks early before they have runs, so if they do drop I usually will top up depending on the stock and my investment strategy, but I have a mental note of certain target price that if it starts falling too much I'll sell and re-evaluate.
Any other tips for exiting Make sure there's enough demand for a stock to be able to sell down into when you decide to sell, all good buying a stock but if there's little demand for it when you want to sell you'll be screwed, hasn't happened to me but it's something I look out for when buying a stock.
Don't Be Greedy Take Profits!
Poster: mouse Date: 18/06/16 Time: 01:09:22 Post #: 18062368 -What exit strategies people use? -Do you set targets and if so how do you set your targets? Do you always sell when target is reached?
Really depends on why & where you bought in, the most important but also the hardest part is buying in when it's trading at half a cent with no recent volume.. Don't be a sheep a buy after the rally, pick a trend or a good story and stick by it, if you got in cheap that don't stress about small pull backs.
For me being a major on FA, i have to value the company and get around about figure value and stick by it. There is so much to this & has taken years to learn but basically just need to find a current comparable company & assess it's value.
Most Techs ran to $100 mill MC last year, Picked up AZK, NOR, AWD in the $10 mill MC range and held out, the hardest part of this was watching profits fluctuate by 10's of thousands of dollars, that's when i started a swing trading parcel... Every time the stock went up 20-30% i would sell, if it came back 20 - 30 % as long as the MC was still under $100 i would buy but always keeping my ST parcel.
I don't really care what anyone thinks but there is pro traders behind all pumps, when you see the big spike like 50% and then the next day and the next day it rally's that is the pro's getting ready to go out.
Now I get tech at $50 mill MC max. Gold miner explorers with decent ground do $20 mill max but 16 is the average. Lithium miners i got at around $4o mill MC It doesn't always work out but has had a 80% win ratio for me doing it this way. There are exception's in this market but the story needs to be fantastic. - If using TA to exit, what signals/candles/patterns/indicators do you look for? N/A - Sell or hold on news? Sometimes news add's value & can give you a future event to get more gains but if we are talking about just pure trading then yes sell on decent news but wait for it to peak.. - Are there certain times of the day which are better suited to selling?
Entry and exist without charts
I want to share something with everyone that has taken a lot trades to learn... It's more geared towards day trading but may help in some way, also it's not 100% accurate but for me it's been more right the wrong. The times listed will vary and the live market depth on IRESS is helpful with seeing the bigger play...
Between 10-10:30am a stock normally goes bunta ( best time to sell ) 10:25- 11am a stock normally gets sold off ( Decent time to buy volume pending ) 11- and 11:50am it may bounce around 11:45 - 12 a sell down will resume ( My favorite time to buy ) About 1 Pm the buying depth's start to look ok and makes a run soon after that 3:45pm some selling starts to show... at this point I'm looking at how strong the buying or the selling is to get an idea if it is a overnight hold but day traders normally leave it to the last few min to cash out.
- Do you use trailing stops for timing when to sell? If you are in front of the computer you should watching your trades, i never used a trailing sell.
- Any other tips for exiting. If you asking all this because you have lost money in the last few weeks then welcome to the club, my strategies works fantastic in a bull market but in the last few week's i have blown close to $25k, not overly upset about the money as i have made plenty this year but just upset at the fact i love trading but can't get into it right now until market starts to look better. Decided i will be very picky & just wait rather than trying to trade against the odds... If I learned one thing that is important it's conserve cash cos when the bulls start running & who knows what/when that is, you get to hit that much harder.
In bearish times invest in yourself...
Don't stress if you get wrong, know that the market has been around for more than 200 years and will be around for 200 longer, learn from your trades good & bad, have a look at others that went up or down, see what happened to them TA & FA. Continued below
