Sell Strategy

[Handle123]

I

Any words of wisdom? Feel free to beat the shit out of me, i probably deserve it.

Former Financial Advisor (retired) , Didnt trade for clients, mostly asset allocation with Index and sector ETFs, some stocks but not MOMO stocks

What were you thinking on AFRM? Ever hear term "Buy low and sell high", over all market in down trend to boot. If you don't have a Trading Plan that been backtested well like over 20-30 years of data, you be guessing as to how much is too much as far as drawdown, you had to reasonable know your protective stop before the trade, and if you willing to lose 47 bucks to 103, you won't be trading long and please give me heads up on all your trades so I can sell them to you and I will go short.

Learn how to hedge well. I have always bought dividend, optionable stocks when short term downtrend and hedge them, wait so many days and if stock takes off in my desired direction, lift hedge, if stock keep going down, have logical small protective stop be hit on stocks but keep hedge on little longer to make a profit on overall on position.

If you make your 401k into a LLC, you no longer have a trustee and can do almost anything.

 

[deaddog]

My problem is, as i mentioned in my reply to Scap, is that UPST, CRWD, AFRM are stocks i like "long term" but that doesn't mean i want to hold them for 5 years. They aren't trades, but they aren't set it and forget it either. So thats where i am struggling with what a proper exit strategy should be.

Thanks for your response, i appreciate the feedback

What is it about them you like "Long Term"? What would change your mind?

I don't see anything fundamentally that would entice me to invest in any of the companies you have mentioned.

 

[longandshort]

what is your rational for buying / selling in the first place? what is the underlying phenomena you are trying to capture? tie your buy/sell signals to that.

 

[KGTrader4]

What were you thinking on AFRM? Ever hear term "Buy low and sell high", over all market in down trend to boot. If you don't have a Trading Plan that been backtested well like over 20-30 years of data, you be guessing as to how much is too much as far as drawdown, you had to reasonable know your protective stop before the trade, and if you willing to lose 47 bucks to 103, you won't be trading long and please give me heads up on all your trades so I can sell them to you and I will go short.

Learn how to hedge well. I have always bought dividend, optionable stocks when short term downtrend and hedge them, wait so many days and if stock takes off in my desired direction, lift hedge, if stock keep going down, have logical small protective stop be hit on stocks but keep hedge on little longer to make a profit on overall on position.

If you make your 401k into a LLC, you no longer have a trustee and can do almost anything.

Re "overall market in a downtrend". i think we've bottomed, look at a 20 day chart,SPX higher lows on 10/4, 10/6 and 10/13, and broke above the most recent high today. Similar action on QQQ. Just my opinion, as i pointed out, I'm no expert and somewhat new at this, so you probably know more than me, which is why I'm here.

Seems to me we are in a bull market, normal pullback vs overall downtrend. If you are daytrading, which i'm not, then yeah the trend is down trend carefully

As for AFRM, thats the one i will probably have on a tighter leash, vs the other two. Fast growing revenue, saw a lot of talk on Fintwit, looked at the chart and liked it. Probably not the right one to use as an example.

Re buy low sell high, i get it. But dont you think momo stocks go high then go higher? So maybe with these kind of stocks in this kind of market its buy high sell higher.

Not trading for a living, so while i enjoy this i dont think i am ready to put in the time to backtest trading plans 20-30 years. I'm not a professional trader, i think a lot of you guys are.

Just my two humble newbie cents

 

[KGTrader4]

What is it about them you like "Long Term"? What would change your mind?

I don't see anything fundamentally that would entice me to invest in any of the companies you have mentioned.

CRWD, right business at the right time, huge addressable market, subscription model so evergreen income, high customer retention rate and fast growth. Chart is monster. I mentioned that i probably chased this one too high, which is why i wrote the calls, and when/if they expire tomorrow i will probably write Novembers. But i like the fundamentals for reasons mentioned, any pullback IMO wont be deep.

UPST - Unique platform, heavy institutional buying strong technicals

AFRM less conviction on this one, see my response to Handle123.

 

[murray t turtle]

Yeah, I'm working on that. Read a great TA book by Brian Shannon, and reading one of the Mark Minervi books. And most important making a habit of looking at charts every day .

I should say i'm an investor AND a trader.......

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I WOULD NOT let AFRM drawdown 66. 6/+ % again;
its got no earnings......................................................................

 

[lindq]

CRWD, right business at the right time, huge addressable market, subscription model so evergreen income, high customer retention rate and fast growth. Chart is monster. I mentioned that i probably chased this one too high, which is why i wrote the calls, and when/if they expire tomorrow i will probably write Novembers. But i like the fundamentals for reasons mentioned, any pullback IMO wont be deep.

UPST - Unique platform, heavy institutional buying strong technicals

AFRM less conviction on this one, see my response to Handle123.

All three stocks are at their highs. Is buying at highs something you would have advised your clients?

 

[deaddog]

All three stocks are at their highs. Is buying at highs something you would have advised your clients?

It's what you do with a momentum strategy. You want stocks that are making new highs. No overhead resistance from investors waiting to break even

 

[SunTrader]

Why titled it Sell Strategy rather than Exit Strategy?

Just sayin'. Helps to be clear from the start.

 

[KGTrader4]

All three stocks are at their highs. Is buying at highs something you would have advised your clients?

No, but thats because my clients weren't a good fit for a MOMO strategy, I preached asset allocation, indexing, with some individual stocks around the fringes. Momentum stocks weren't in my wheelhouse.
Also, managing other peoples money is a whole lot different than managing your own. I had to answer to them when things went south and no matter how much time you spent managing expectations, most of them forget what you said when you bought the stock, if its down 20%.