Motivation

Originally posted by STOCKKBROKER
What are some of the rules that you stick by day in and out as to cutting losses and letting your winners ride.

Which brings up another question, how do you let your winners ride?

I can't even begin to count how many times when I sold some stock for 50c profit just to see the stock goes another point. I don't have an effective game plan to ride my winners, any suggestions?

Something that has helped me transition to holding longer is scaling out of positions. For example, take half your profit where you would usually take the whole profit. Then you have a "free trade" (runner) on the other half (move your stop point to make sure you never take a loss) so then it is just a matter of riding the move a bit longer and evaluating if the trend will continue or if it is best to exit before the stop is hit. Sometimes you will find you were better off exiting all, but over time the runner will pay for itself in spades!

Good Luck,
 
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