A 70k bet that I can't make a 50% gain in 2009

[AA48]

I was chating with a friend of mine this morning,both watching the Greek stock market.He had bought a stock 2 days ago and today was up 17%,giving him an overall profit of 20% in 3 days....

Well,I asked him "how are you going to manage this trade?" (ther is no leverage involved here,stricktly cash...).His reply was interesting.I've never thought of that...

"I am going to sell now so many of my stocks,as to get back my initial capital,plus commissions.For the remaining shares,my entry price is zero! They are free for me...So,my stop loss is zero!
I don't know where the price will go the next days...but,since my risk is zero,I'll target the next significant resistance on the weekly chart.I'll do nothing till the price goes there....And if it goes there,I'll sell them all..."

Rather strange approach,agree?

 

[geez]

Quote from geez:

5/5/09:

10:23 700 SRS BUY 21.79
STOP 21.49
TGT 22.39

Stop moved to b/e

 

[TraderSU]

Quote from geez:

Stop moved to b/e

Just curious, why not cash out at 22.30, only 9 cents below your target and specially when .INX is playing around 900 level - possible support.

 

[Thanagar]

Geez has a return in excess of 23% so far this year...and you're wondering why he doesn't alter his rules?

 

[TraderSU]

Quote from Thanagar:

Geez has a return in excess of 23% so far this year...and you're wondering why he doesn't alter his rules?

No intention to challenge him - just trying to understand it better.

Geez is certainly a role model for all traders

BINGO - he had his target.

 

[geez]

Quote from geez:

5/5/09:

10:23 700 SRS BUY 21.79
STOP 21.49
TGT 22.39

11:00 700 SRS EXIT 22.39
P/L +417.20

 

[geez]

5/5/09:

11:23 600 AAPL SHORT 131.90
STOP 132.20
TGT 131.30

 

[Ssage]

Quote from sudhaker:

No intention to challenge him - just trying to understand it better.

Geez is certainly a role model for all traders

BINGO - he had his target.

I don't know much about anything and I am new here but I have read most of this thread. My guess at his answer would be when you start playing the guessing game as to when to get out early you could potential stop all your trades early. By letting your trades come to fruition/running their course one way or the other your sticking with the system and removing the guess work.

It's easy to say afterwards why didn't I get out early but what stops you from doing that on every trade?

 

[geez]

Quote from geez:

5/5/09:

11:23 600 AAPL SHORT 131.90
STOP 132.20
TGT 131.30

11:34 600 AAPL EXIT 132.19
P/L -187.83

 

[geez]

5/5/09:

2:09 1000 SPY BUY 90.24
STOP 90.04
TGT 90.64