Since the markets have stopped their incessant march upwards at the moment, lots of shorting opportunities abound. New lows make newer lows and it's easy to catch some nice profits. The art of profit taking can be easy to apply if you employ a couple basic rules:
1. Have no profit target. Since you or no one else know for sure where a stock will rise or fall to, free your mind to only watch when it and the markets stop the current momentum. And,
2. Take profits when you'd be an bloody idiot not to.
A few examples today:
1st chart is LULU short
2nd chart is LULU profit taking
TNA short
TNA profit taking
VECO short
Posts
2 comments:
Thanks for the pointers today Scott. Much obliged. You definitely have a knack for timing.
Scott,
How do you stop the nervous feeling or anxiety created by having the positions fluctuate? Or do you not really experience those emotions. Everytime I have a good trade going, I try not exit so quickly. I tell myself work with the 5 min chart. Yet, I always get out early due to wanting to end that emotional feeling of nervousness. Once the position is closed, I am not nervous anymore. I am thinking about changing my stops to trailing stops, so they move along with the profit, but I have never used these before.
Joshua
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