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Best Practices – Selling to protect profit$

QuestionsCategory: QuestionsBest Practices – Selling to protect profit$
Mike Lenahan asked 6 years ago
Hi Pat - Good morning! I understand the concept of selling some shares into strength, and that makes a lot of sense. With regards to selling some shares on weakness, I understand that the 8 day EMA is our first line of defense, and the 21 day SMA is our second. With regard to intraday activity, do you wait for a close below the 8 day EMA / 21 day SMA before selling some shares, or sell some when these lines are crossed intraday? Does the 1st 30-45 minutes of the day, with it's natural volatility, affect your decision for the above? Will an intraday cross below the 50 day EMA intraday prompt you to close the position entirely, or do you sell some more, then wait for a close below the 50 day SMA to close out the position? Anything else I am missing? Thanks
Mike
1 Answers
Avatar photoOwen Staff answered 6 years ago

Hi Mike,
Video from Pat:
https://youtu.be/Wco0gNewETM

Mike Lenahan replied 6 years ago

Beautiful answer, thank you so much!

Evaluating the approach to the 8 EMA and 21 SMA makes total sense in context of where we made the purchase, and how much cushion we have.
“Plain and simple”.