how do you know when to sell?

[engineering]

My thinking (as a total amateur):
You have to have some way of calculating the value of what it is you're buying and selling.
Without that, you can't really tell if the price is "high" or "low".
If you have some metric for value, then you can decide the price is good, so you sell some. If momentum slows, maybe you sell it all. If you think it's under-priced, maybe you don't sell.

 

[notagain]

For trend following, Trailing stop equal to 70% of the daily range between the average high and low.

 

[KCalhoun]

I use a simple 2day high low approach for swings. If it ends the day higher than prior day I buy more. If it sells down under pdlow I scale out

 

[deaddog]

I use a simple 2day high low approach for swings. If it ends the day higher than prior day I buy more. If it sells down under pdlow I scale out

What is the process for scaling out.

 

[Peter8519]

Here are my thoughts based on trading stocks. Spend 90% of the time is on screening and the rest on executing. Why? Need to minimize wrong trade aka have an edge. There is no absolute e.g. "I am right" or "I am wrong" just probability i.e. I could be right and I could be wrong. All the potential triggers(cut loss, take profit etc) on potential outcomes are in place before a position is entered. With the process in place, the next important item is capital. Having $100K capital is better than $10K, so must have sufficient capital.

 

[deaddog]

the next important item is capital. Having $100K capital is better than $10K, so must have sufficient capital.

Why does the amount of capital make a difference? Wouldn't the process remain the same?

 

[KCalhoun]

What is the process for scaling out.

I sell most, 2/3 if it loses 2dlow, remaining shares if trend drops 2dlow again the next day

More conservative on winners, eg add 30-50% at 2dhighs

Process is everything

 

[padutrader]

it appears that you getting out when a counter move to your position occurs.

i had this problem for 14 years.........so i used to get out at the first correction...which is often where the whole world was getting in.....

i eventually learnt that first entries were continuation moves ..........i also found that third entries were the ones gave decent tradable counter moves.

this very general stuff

 

[sandy_s]

I believe you are hesitant to click the open position button (buy or sell) as you are not comfortable in taking a small loss when market has proven you wrong.

Once you get comfortable with taking small losses, you will see the difference it makes to your trading. You will buy or sell at the right time without waiting too long

 

[padutrader]

Without that, you can't really tell if the price is "high" or "low".

one way is say ok this is high.....if it goes higher than sell more.....if it goes higher sell more.....if it goes higher close all positions.....so with each breakout scale in with a wide stop...

this works well when market is not trending or at the end of trends........here it is a real lottery