Comments on: 3 Essential Steps to Successful Investing Online

By: Blain

Blain — Wed, 05 Sep 2007 04:09:45 +0000

I would place a stop order on the new position with no expiration date. What this does is automatically triggers a sell on your position if the stock falls to xx price. Check this post out for more info,

http://www.stocktradingtogo.com/2007/05/17/using-stop-loss-orders-the-basics/

By: Blain

Blain — Wed, 05 Sep 2007 04:08:13 +0000

Good Question. My selling strategy is based on technicals really since I have a weigh heavier on them versus fundamentals. I like to keep stops anywhere from 3 – 8% below my purchase price, and raise them as the stock goes up accordingly. I typically don’t hold positions for long periods of time though.

By: Mikel

Mikel — Tue, 04 Sep 2007 14:04:41 +0000

They say that tyou should not buy without knowing your sell. Does this mean that when you place your buy order, you go ahead and put in a GTC sell order at the specified target then just let it run on auto pilot? will this work?

By: The Financial Blogger

The Financial Blogger — Tue, 04 Sep 2007 11:23:11 +0000

Blain, according to your trading experience, what would constitute a good exit strategy?
I would say that as long as the reason why you bought the stock is in place (profit, growth, management team, economic condition, etc), you should hold the stock. When an important factor is changing, then it is the time to think about something else.

Some people based their strategy on a fix yield (let’s say 20%). Each time that a stock reach this yield ,they sell it. It’s a pretty easy method to use but you might miss a lot of profit along the way.

What are your thoughts?