Steve Irons asked 7 years ago
Pat Walker Staff answered 7 years ago
Steve,
Great question. I watch the chart and focus on price & volume action. I look at the past moves to determine approximately how far does the stock move before it
pauses or pulls back. If it's 2 -3 points and it's a slower-moving stock, I take that into consideration for selling SOME. For TER it broke out and marched up steadily with higher lows. When it gapped up on 10/3 and started to pull back that day I took some off. I like to sell some into emotional gapups. I did NOT sell more there. Stock went sideways, lifted off 8 ema, and started trending again. Note the gap up on 10/13. Note the volume. That could be a trigger to sell a bit more. NOW we've sold 20% to 30% each time so we can let the rest walk up the 8 ema. We let the trend work for us. Specifically, I'll take 20 to 30% each time. Another point, on slower stocks like this I do NOT want a 2 - 3 point profit turn into a loss. Also, and this is important, I must take earnings dates into consideration. I am VERY careful buying just before earnings.
Let that 8 ema work for you. If we get a really big profit, I'll some more if it loses the 8 ema and give the balance down to the 20 day. It may BOUNCE there. Loses 20, rest is sold. Hope that helps.
Sincerely
Pat
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