Timing Your Exits
In the words of Kenny Rogers, "You gotta know when to hold 'em, know when to fold 'em". In theory timing your exits from open positions, i.e. when you sell, should be very easy. There are two (or possibly three) cases that would cause you to pick up the phone to your broker or click 'sell' on your screen:
· Your stock has risen to the Profit Target you set when you entered the trade; or
· Your stock has fallen to the Stop Loss you set when you entered the trade; or possibly
· Your pre-determined time limit has passed, so you decide you can more profitably use your capital elsewhere.
The New Sell and Sell Short
Any beginner in the stock market knows how to buy. Knowing when to sell will set you above the crowd. This book will teach you when to sell and how to sell short.Stocks go down much faster than they rise, and knowing how to short doubles your opportunities. Amateurs don't know how to short and are afraid of it, but professionals love to profit from declines. This new and expanded edition includes an intensive study of the 2007–2009 bear market, with many specific trading examples, distilling the essential lessons of recent years.
"Elder clearly shows how to take profits on winning trades or cut losing trades. He skillfully combines technical analysis with trading psychology and risk management. "
--John J. Murphy, author of Technical Analysis of the Financial Markets