The question came up last week about this stock. Having bought
successfully back in late 2000, is it now time to sell ?
I have drawn some trend lines on the chart, which are steepening. This
cannot continue forever, without some sort of retracement.
Having said that though, the trend is up.
Of course the trick in the mkt is not only knowing when to buy, but when to
sell. As a trader one of my targets is often; if i have doubled my money,
I take profits. (learnt by experience). Sometimes also, if I was feeling
nervous and had good profits, I learnt to sell half and let the rest run,
(stop loss under last decent weekly low - but in this case we don't have
one such is the steepness) in order to settle the mind a bit.
another possibility might be;
if considering selling, and have doubled your money, then sell, execute
the decision, and find another stock and improve upon the way you traded
this one. ie adding to your original position each time the stock broke
into new highs.
another possibility;
keep a stop loss under each day's low from todays chart picture, sell when
broken, or
put the stop under the steepest trend line as drawn, at least this may help
maximise profit.
finally;
emotions experienced when deciding the time to sell, often preclude
effective decision making. Stick to examining ht / hb, trend lines, gann
etc to overcome it, perhaps thereby making the decision somewhat more
scientific and clinical. And if having sold, don't berate yourself should
the stock continue even higher. This is self defeating behaviour. Like
golf, perfect execution continuously, is rare.