Hi Pat,
My biggest problem in trading has been selling too early and not riding the trend. Furthermore, I'm also keen to have a selling rule that gets me out quick if a trade isn't working early. I need rules for this as being discretionary isn't working as well as it could. I'm thinking of the following:
- On entry set a mechanical SL based on a point that gives the stock some room to allow for intra day spikes but have a get out quick rule of selling the stock if it closes 3% below the purchase price. I've analysed over 200 trades and I would have missed very few winners if this rule had been applied;
- If the stock is below the entry price after a week sell;
- After the 5 day period if the price gets above 10-15% (the actual % decided depending on market conditions) sell 1/3;
- If the price then breaches the 20 day simple moving average sell 1/3; and,
- If the price goes below the 50 day moving average sell the remainder.