Position Trading Stocks

T

tradingbug

I was just wondering if anybody uses a right Trend Line of a predetermined slope(angle of appreciation) right after entry.

Essentially, after entry, price has to rise(for long) at least a certain percent every day. Otherwise, one should leave that stock and put money into another stock beginning to BO.

This is primarily for the period right after the initial BO. Once the trend channel is established(lesser angle of price appreciation than the initial BO), I use the trend channel right line for my stop log. This channel would be equal to or greater in slope than my original predetermined right trend line if I did not get stopped out.

This is probably basic but any comments are welcome.
 
Quote from tradingbug:

I was just wondering if anybody uses a right Trend Line of a predetermined slope(angle of appreciation) right after entry.

Essentially, after entry, price has to rise(for long) at least a certain percent every day. Otherwise, one should leave that stock and put money into another stock beginning to BO.

This is primarily for the period right after the initial BO. Once the trend channel is established(lesser angle of price appreciation than the initial BO), I use the trend channel right line for my stop log. This channel would be equal to or greater in slope than my original predetermined right trend line if I did not get stopped out.

This is probably basic but any comments are welcome.
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Sounds good ;

& may want to modify the '' price has to rise [for longs]at least a certain % each day, especially with proper due diligence on stock,sector.:cool:
 
hmm... the problem I see with this approac, is that most stocks go on a sideways movement before continuing the up trend [or reversing into an downtrend]
so by taking a\out all of your stake because it's not going up fast enough, you could be missing a considerable move up...

I say take some profits and leave some inside... just to see if it blows up.
 
Quote from eusdaiki:

hmm... the problem I see with this approac, is that most stocks go on a sideways movement before continuing the up trend [or reversing into an downtrend]
so by taking a\out all of your stake because it's not going up fast enough, you could be missing a considerable move up...

I say take some profits and leave some inside... just to see if it blows up.
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I agree that after the initial take off of a BO, their is a healthly lateral or pullback before the trend resumes. The objective is a balancing act to give enough room to allow the natural pullback to occur but exit off of something that would not be categoraized as a natural trend pullback/stall.

Another benefit of leaving if the stock is not performing immediately is putting it into another stock which is BO and whos money velocity is greater than that of sitting in a lateral trend where the money is neither making nor losing money.

thanks for the reply
 
Quote from murray t turtle:

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Sounds good ;

& may want to modify the '' price has to rise [for longs]at least a certain % each day, especially with proper due diligence on stock,sector.:cool:
More...

I have also thought about looking at the stocks prior moves and using that as the bases for my initial trend slope. Is this what you were referring too?

How would you incorporate the sectors?
 
I think that a good approach to the issue is to foresee where one's trend will encounter resistance and take partiall profits in such areas... but always leave a stake in... in case the trend resumes, as usually a trend wont do its most profitable moves before it has encountered at least a couple of resistances.
 
I once tested wide stops against close stops and found no great difference in performance. The close stops had more trades but losses were smaller. The wide stops show fewer trades but each loss was bigger. Overall, performance was about the same. So I don't think it makes much difference how or where you put the stop loss order. Just do whatever you like.
 
Quote from tradingbug:

I have also thought about looking at the stocks prior moves and using that as the bases for my initial trend slope. Is this what you were referring too?

How would you incorporate the sectors?
More...

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TradingBug;

Yes .
And research William O' Neil;
investors.com
barchart.com
Jim Cramer M Money.

Study sectors lots and may occasionaly take partial profits;
may buy strongest, much loved stocks,
sell weakest.

And have to watch J. Cramer with discretion, dont take him too seriously on his global warming comment or about OCT 31 ''egging management ''[ throwing eggs] '' on a company he didnt like:D
 
Hunting for the big fish (trends) is the way to go.

1. Trend is easier to determin...easier to follow
2. Time to relax and do other things or trade other markets
3. Much bigger profits
4. Less stress
5. Holding multiple positions allows you to have a better chance of having + weeks, months..etc..

where my fellow swingers/ position traders at?
 
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