Short Profit Taking & Re-entry

[bob2007]

What type of TA should I consider for re-entry?

I think a stock will go from 100 to 50.

1. I am long term short a stock, but as experience has told me I have to take profits.
2. I take a profit i.e. 100 moves down to 80, I pick an intraday cover point.
3. I am looking for a re-entry short. But often I short and it's the wrong spot and stock goes up 10%.

 

[tommcginnis]

You shouldn't consider re-entry.
You should look around for a fresh deal --
you should look for a new trade --
same as if the whole market-trading-board were wiped clean.

If you *know* something about a particular stock
(let's say you just ended a 1-week study of it, and had just exited a short position { }
and felt better informed on it and its recent excursion downward..... than on other choices.
That should *still* be an outcome of a de'novo evaluation, informed by what had just happened.

"Don't be married...." (to a stock or a position) and all that.

FWIW, though: if I thought a $100 stock had been worth $50? And had shorted it? And had just taken profit at $75??? I would be a lot less interested in shorting that stock: it's only got half the overage it held before. If $100 were a strain, then $75 would be a lot less of a strain, and I would NOT be interested in a short. (Think about TSLA ~$300. Next week, it could be $268. Or, $368. "Nope!")

 

[bob2007]

Thanks for your answer and I think it's a good one.

I hadn't thought of the risk reward has changed.

 

[qxr1011]

What type of TA should I consider for re-entry?

I think a stock will go from 100 to 50.

1. I am long term short a stock, but as experience has told me I have to take profits.
2. I take a profit i.e. 100 moves down to 80, I pick an intraday cover point.
3. I am looking for a re-entry short. But often I short and it's the wrong spot and stock goes up 10%.

one definitely can enter and re-enter position many times while stock is trending down or up,

and you can combine that with reversing the position each time !

but this is something akin to a trading aerobatics ,

and to do that is a matter of having very efficient trading method and being an extremely capable trader- not something you will be explained or given here or anywhere else....

consider concentrating on S/R, that is all i will say