how do you know when to sell?

[mute9003]

so after selling too early few times and missing a huge spike im unable to sell and take small profits because i feel like i dont know enough to make a sound judgement on when exactly to take profits...
Because theres always that."what it it goes way higher" and in my case alot of times it did in the past right after i sold

now i cant seem to press that button and sell in the right time
Even though in last few months i have been consistently finding the top of the spike before it reverses and im stuck in it for few days or weeks

 

[maxinger]

Your question is too general.
So the answer will be simplified.


sell during the downtrend.

In simple English, this is a downtrend ;
when you start to see descending trend line or
descending triangle formation (eg for swing traders - PTON)

when the highs are starting to get lower
eg for day traders -
on 9 Nov 2021 during the early part of the US session, ES, NQ, Russell 2000
highs were getting lower

 

[mute9003]

What i mean is alot of times i cant tell if trend is over or not and end up selling during a small pullback thinking that its being dumped..
im looking for some tips on chart reading to tell a difference between a pullback and a trend reversal

 

[deaddog]

You never get out at the top.

You either sell on the way up or on the way down.

One method I've seen promoted is to sell a portion on the way up and the rest on the way down. sell 1/3 at a target or a certain time into the trade; Sell 1/3 at a trend line or moving average and sell the last 1/3 with a trailing stop.

 

[mute9003]

And i also buy often during a small pullback during downtrend also thinking its the bottom and trend reversal
I dont really know what is possible to predict with chart reading and always feel like theres something i dont know. Because from all the videos i watched and courses i took, nobody really explained in reasonable detail what can and what cant be known from chart reading..
Obviously its impossible to predict with 100% probability where it will go next but its possible to predict with some certainty if you are good at reading charts

 

[deaddog]

And i also buy often during a small pullback during downtrend also thinking its the bottom and trend reversal

Why do you think that?

 

[mute9003]

For example dpw yesterday
almost every time it spikes it spikes either 2 bars or 2 peaks that stop about same price. I know thst because i have been trading this stock for more thsn 2 years and it does this very consistently.
and almost every time i have my order ready to sell and end up just watching it... and missing an opportunity.
Because there is this nagging thoughr in the back of my mind.. what if it keeps going... which it does but not very often.
So now i missed about 700 dollars profit yesterday.
And could have bought it again today
And made more small profits

 

[deaddog]

View attachment 270889 For example dpw yesterday
almost every time it spikes it spikes either 2 bars or 2 peaks that stop about same price. I know thst because i have been trading this stock for more thsn 2 years and it does this very consistently.
and almost every time i have my order ready to sell and end up just watching it... and missing an opportunity.
Because there is this nagging thoughr in the back of my mind.. what if it keeps going... which it does but not very often.
So now i missed about 700 dollars profit yesterday.
And could have bought it again today
And made more small profits

Think about it. You have a guaranteed profit but you turn it down because it might keep going up so you lose money. You consider that a missed opportunity.

If you sell where you think you should instead of giving in to FOMO, and it goes up you have also lost opportunity. But in this case you have money in your pocket.

 

[mute9003]

How the hell do i get rid of that?
Shit is very irritating.
I have had the sell orders ready but lost confidence in my decision making and cant get myself to do it

 

[deaddog]

Write down what you plan to do..
Then go buy yourself an electric nail gun.
When you don't follow your plan drive a nail into your leg.
If you are trading small you can start with a stapler.

Figure out what your afraid of. Losing money. Being wrong. Missing opportunities. Then ask yourself why your afraid of whatever.

Figure out why you are trading. To make money. To be right. To be able to brag on ET. To beat the market.

All else fails hire a shrink.