Market Gaps 2%, Three Ways to Gaurantee Profits
Posted by Blain Reinkensmeyer
March 11, 2008 at 9:14 am
The theme of last night’s Stock Picks was finding stocks that if the market rebounded would perfrom well. I hope you read the post, because this morning the indices have gapped 2%+ across the board.
Most of my picks have already seen big opens:
- AKS, +3.5%
- GOLD, +5.2%
- DRYS, +8%
- CLF, +6.5%
- CRZO, +2.4%
Being smart is better then being right, so here are three ideas on how to play your unrealized profits:
- Sell 100%, walk away.
- Sell 50%, and place a stop loss just above your original buy point on the last half to guarantee you don’t lose.
- Sell 0%, place a stop just above even.
For me personally I like to go the route of #2, especially in this market. You have money, take some off the table and classify any further gains as simply, “icing on the cake”. Don’t forget to use ONLY limit orders when you buy or sell, and lastly know that the longer you hold your new positions, ESPECIALLY if overnight the more risk you take on.
Good luck out there! 
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Wow! Dissappointed that I got stopped out of POT with upgrades and targets increased to over $200. DRYS and TBSI looks good today. Do you see any opportunity in HUM, CVH or WLP? Healthcare punished but maybe overkill.
Fast Money Adami just mentioned HUM as a buy on CNBC
Nice post, I’m looking at #2 as well….still skeptical, what a phenomenal day!!!
Thanks so much for this article!!!!
I actually locked in profits today without sitting forever.
Took #2 method, thinking of 75% slices.
Excellent Ray, nice play!