Tax Season is Here! Save 15% on H&R Block Online
iconAll times are GMT -4. The time now is 12:51 PM. | Search:

» StockRants Stock Forum » General Forums » Traders Lounge » I do know how difficult it is to sell a high flying stock.



Reply
 
Thread Tools Search this Thread
Old 05-02-2009, 03:10 PM   Nav to Top  #1
trants
Rants
 
trants's Avatar
 
Join Date: Apr 2009
Location: Cloverdale, OR
Posts: 552
Favorites: MOT WDC ENG
Rep Power: 471
Reputation: 7968
trants has a reputation beyond reputetrants has a reputation beyond reputetrants has a reputation beyond reputetrants has a reputation beyond reputetrants has a reputation beyond reputetrants has a reputation beyond reputetrants has a reputation beyond reputetrants has a reputation beyond reputetrants has a reputation beyond reputetrants has a reputation beyond reputetrants has a reputation beyond repute
Lightbulb I do know how difficult it is to sell a high flying stock.

I have been emailed by some people who don't want to sell the stock that takes their cash off the table using my "FREE STOCK PLAN" They want to hold it all.

I do know how difficult it is to sell a high flying stock.

If you are "cash rich," by all means use your gut to decide what to hold. If you are building a portfolio, consider the following. (It is addicting!)

But I want to offer this suggestion to many of you. I quote from a reply to a member!

"I know what you mean about wanting to hold tight. It is one of the toughest things I had to learn to do. To take the original cash off the table.

I do that so I can start another one going, or depending on circumstances, I have the cash when a retraction happens to get back in. Then I can ride the same one again for more FREE shares.

You can let it take care of itself and let the natural action of the market do it for you.

Use a "Trailing Stop" When a stock is in the $1 - $2 range give it a 20% sell of the portion of the stock it takes to get the invested cash back.

Over $5 reduce to 15% and @ $10 cut to 10%. This way you take the stock to it's highest point of return. You will adjust your shares to be sold down as it climbs also.

IE.. if you paid .75 cents 50% stock sold @ 1.50 then @ 3.00 sell 25% also if it holds till $5 sell 15% and $7.50 you only need to sell 10%.

Play the stocks success and cash out when it turns back and retracts some.

Let the rest of the stock go without the stop loss. That is parked stock. You really do not care what market gyrations occur. You are holding those for 2010 and beyond. You won't even mess with them unless a catastrophe happens.

That gives you the cash back automatically. "

I hope this advice helps to take profits and then use them wisely! you still have the parked shares for the LONG RUN!

trants is offline   Rate this post Yes | No Reply With Quote
Old 05-02-2009, 03:31 PM   Nav to Top  #2
sblok
*BEAR*
 
sblok's Avatar
 
Join Date: Apr 2009
Location: vancouver
Posts: 81
Favorites: KFN,FAZ/FAS,TBT,SRS
Rep Power: 162
Reputation: 710
sblok is a splendid one to beholdsblok is a splendid one to beholdsblok is a splendid one to beholdsblok is a splendid one to beholdsblok is a splendid one to beholdsblok is a splendid one to beholdsblok is a splendid one to behold
Default

FREE STOCK PLAN works great for me, my porfolio has increased by 20 positions, up from 5 just a few months ago. They are all fairly small, but at least I know I'm not gonna miss any big upside swings. You just have to prepare yourself for the best/worst scenario. By best scenario I mean recovery in q3,q4, worst major crash. Have cash on hand at all times and you are golden!

sblok is offline   Rate this post Yes | No Reply With Quote
Old 05-02-2009, 06:50 PM   Nav to Top  #3
Superfly
UberTrader
 
Superfly's Avatar
 
Join Date: Apr 2009
Location: Twin Cities/Minocqua WI
Posts: 397
Favorites: RIG, HEB, LVS, KFN
Rep Power: 312
Reputation: 4139
Superfly has a reputation beyond reputeSuperfly has a reputation beyond reputeSuperfly has a reputation beyond reputeSuperfly has a reputation beyond reputeSuperfly has a reputation beyond reputeSuperfly has a reputation beyond reputeSuperfly has a reputation beyond reputeSuperfly has a reputation beyond reputeSuperfly has a reputation beyond reputeSuperfly has a reputation beyond reputeSuperfly has a reputation beyond repute
Send a message via MSN to Superfly Send a message via Skype™ to Superfly
Default

I think it also depends on how much money you have in it. If you only have 100$ in a 2 dollar stock, there really isnt much sense in taking "free stock" because by the time you get done making the trade, you will need another 50% gain just to make up for the transaction. On the other hand, 4-500 dollars or more it is a WISE decision to do something like that, especially if it is a long term stock like trants said, or a stock that has been on a steady rise. If you want to keep riding it up, take your initial purchase out of it, and then you have absolutely NOTHING to worry about if it would experience a selloff
__________________
If you are given a chance to be a role model, I think you should always take it because you can influence a person's life in a positive light, and that's what I want to do. That's what it's all about.
Tiger Woods


I'm putting in my market order right now on this b! --> TTNP thread title in Premarket 5/7/09..that one is for the ages!

Yes we Can...Yes we Will!!!
Superfly is offline   Rate this post Yes | No Reply With Quote
Old 05-03-2009, 10:20 AM   Nav to Top  #4
AKrider
VIP Trader
 
AKrider's Avatar
 
Join Date: Apr 2009
Location: Atlanta
Posts: 319
Favorites: SD, BCF, BIPH
Rep Power: 215
Reputation: 1823
AKrider has a brilliant futureAKrider has a brilliant futureAKrider has a brilliant futureAKrider has a brilliant futureAKrider has a brilliant futureAKrider has a brilliant futureAKrider has a brilliant futureAKrider has a brilliant futureAKrider has a brilliant futureAKrider has a brilliant futureAKrider has a brilliant future
Default

This method helps repress the urge of throwing my computer out the window after I sell to quick and the stock triples.
__________________
"We are what we repeatedly do. Excellence, therefore,
is not an act but a habit." -Aristotle

Fortune favors the brave.
AKrider is offline   Rate this post Yes | No Reply With Quote
Old 05-03-2009, 11:07 AM   Nav to Top  #5
AndyB
Pro Charting Wannabe
 
AndyB's Avatar
 
Join Date: Apr 2009
Location: Manchester
Posts: 386
Favorites: $SPX GGG.L ARSLF
Rep Power: 324
Reputation: 4467
AndyB has a reputation beyond reputeAndyB has a reputation beyond reputeAndyB has a reputation beyond reputeAndyB has a reputation beyond reputeAndyB has a reputation beyond reputeAndyB has a reputation beyond reputeAndyB has a reputation beyond reputeAndyB has a reputation beyond reputeAndyB has a reputation beyond reputeAndyB has a reputation beyond reputeAndyB has a reputation beyond repute
Default

Originally Posted by trants View Post
I have been emailed by some people who don't want to sell the stock that takes their cash off the table using my "FREE STOCK PLAN" They want to hold it all.
Perhaps I can offer my experiences to the table, which hopefully others can learn from.

I started investing in Oct 2008 (great time eh?) and my first ever buy was LON:HBOS. Good for me, I bought a bankrupt bank. I bought at £1.55 and within a week it was at £1.90. I thought "Wow Im good at this", didn't take profit, and the very next day, it gapped down to £1.35. It never went as high as £1.90 again. Since then HBOS has been bought out by LLOY and is currently worth around £0.50/share. It went as low as £0.20 at one point.

Another trade I made was I bought ING Group on the Euro Exchange for 4.5 Euros. I bought within cents of the bottom in Oct 2008. Within a week it was at 9.5 Euros. I thought "Hey I'm good at this!" and Instead of selling for profit, I added at 9.5 Euros - right at the top! ING retraced and I ended up making a net loss on that trade, from a 100% gain.

Another trade I made was KWK. I bought KWK under $6 in late December and within a few days it was at $9!! Guess what I did? I added at $8.5 "It Keeps going up!!" and of course it retraced, I made a net loss on that.

So, apart from knowing I'm a stupid investor, what did I learn? My greed to make more money killed me. I will never make the mistake again. recently I swung the other way and I started selling too early, with 10% profits and missing out on 50's 100's, but I'm starting to find the balance again.

Greed will kill you quick in this game. If you can't let go and take a profit when your stock rises 20, 30, even 40% then you won't last long - unless you change. The "Free Stock Plan" is utter genius really and if you can conquer the greed of "Just a little more - just a little more" then you will be rewarded.

Now I will never let a profit turn to a loss. Any trade I make, stoplosses are set to break-even as soon as the stock is well in profit. Then I take partial profits at a pre-determined point, leaving the B/E stop in place. The remaining portion can be left as long as I like, without fear of loss. Proper money management will get you far in this game.

My mistakes have taught me well. I now am gaining the ability to buy low (despite the fear) and sell high (despite the "Just a little more!" greed). Don't be a fool like me. Take partial profits and use stops!
__________________
I am a junior investor/trader with less than a years experience, so weight my words accordingly.

I'm using a stoploss at my break-even on SFEG. Production is delayed.
AndyB is offline   Rate this post Yes | No Reply With Quote
Old 05-03-2009, 12:41 PM   Nav to Top  #6
AKrider
VIP Trader
 
AKrider's Avatar
 
Join Date: Apr 2009
Location: Atlanta
Posts: 319
Favorites: SD, BCF, BIPH
Rep Power: 215
Reputation: 1823
AKrider has a brilliant futureAKrider has a brilliant futureAKrider has a brilliant futureAKrider has a brilliant futureAKrider has a brilliant futureAKrider has a brilliant futureAKrider has a brilliant futureAKrider has a brilliant futureAKrider has a brilliant futureAKrider has a brilliant futureAKrider has a brilliant future
Default

"Greed will kill you quick in this game. If you can't let go and take a profit when your stock rises 20, 30, even 40% then you won't last long - unless you change. The "Free Stock Plan" is utter genius really and if you can conquer the greed of "Just a little more - just a little more" then you will be rewarded. "

I completely agree. When I first started trading I had the same impulse as you. I would find a beautiful trade and it would start taking off. My greed took over and I thought, "Man imagine how much more I would have made if I had bought more of the stock." So I chase it going up and get screwed. I did this a few times last year with SD and AIB. Never chase a stock going up, it can retrace faster than it went up sometimes! Trants' version allows you to take some off so you dont miss out on the potential profit, and you dont get screwed!

Smart people learn from their mistakes. Wise people learn from other peoples mistakes.
__________________
"We are what we repeatedly do. Excellence, therefore,
is not an act but a habit." -Aristotle

Fortune favors the brave.
AKrider is offline   Rate this post Yes | No Reply With Quote
Old 05-03-2009, 12:44 PM   Nav to Top  #7
AndyB
Pro Charting Wannabe
 
AndyB's Avatar
 
Join Date: Apr 2009
Location: Manchester
Posts: 386
Favorites: $SPX GGG.L ARSLF
Rep Power: 324
Reputation: 4467
AndyB has a reputation beyond reputeAndyB has a reputation beyond reputeAndyB has a reputation beyond reputeAndyB has a reputation beyond reputeAndyB has a reputation beyond reputeAndyB has a reputation beyond reputeAndyB has a reputation beyond reputeAndyB has a reputation beyond reputeAndyB has a reputation beyond reputeAndyB has a reputation beyond reputeAndyB has a reputation beyond repute
Default

BTW it is legitamate to add to (chase) a winning trade, so long as you trail a stop on the total position so that your total risk is kept very small.

Check Mile's "Reverse Scale Trading" strategy outlined in this thread

http://www.stockrants.com/forum/tech...readsheet.html

This is also known as "Snowballing" a trade.

Often it results in being stopped out for small gain, or small loss, but the occasional long term trend you catch results in a huge snowball of gains, for little risk.
__________________
I am a junior investor/trader with less than a years experience, so weight my words accordingly.

I'm using a stoploss at my break-even on SFEG. Production is delayed.
AndyB is offline   Rate this post Yes | No Reply With Quote
Old 05-04-2009, 01:26 PM   Nav to Top  #8
trants
Rants
 
trants's Avatar
 
Join Date: Apr 2009
Location: Cloverdale, OR
Posts: 552
Favorites: MOT WDC ENG
Rep Power: 471
Reputation: 7968
trants has a reputation beyond reputetrants has a reputation beyond reputetrants has a reputation beyond reputetrants has a reputation beyond reputetrants has a reputation beyond reputetrants has a reputation beyond reputetrants has a reputation beyond reputetrants has a reputation beyond reputetrants has a reputation beyond reputetrants has a reputation beyond reputetrants has a reputation beyond repute
Thread Starter
Lightbulb So it works to HOLD a small amount of your "BAD" stock on your wrong calls too.

Originally Posted by AKrider View Post
"Greed will kill you quick in this game. If you can't let go and take a profit when your stock rises 20, 30, even 40% then you won't last long - unless you change. The "Free Stock Plan" is utter genius really and if you can conquer the greed of "Just a little more - just a little more" then you will be rewarded. "

I completely agree. When I first started trading I had the same impulse as you. I would find a beautiful trade and it would start taking off. My greed took over and I thought, "Man imagine how much more I would have made if I had bought more of the stock." So I chase it going up and get screwed. I did this a few times last year with SD and AIB. Never chase a stock going up, it can retrace faster than it went up sometimes! Trants' version allows you to take some off so you dont miss out on the potential profit, and you dont get screwed!

Smart people learn from their mistakes. Wise people learn from other peoples mistakes.

I just want to tell you folks that this FREE STOCK plan has another side I play. It has its merits as well. I book "BAD" stock on the ones I decide I called wrong and bail on as well. (Yes, I call some wrong, bet you were really surprised!)

When I hold a small percentage of my wrong calls, some of them turn positive again. (This never happens to you does it, you sell a stock and then it shoots up.)

When they do, I recover all or part of my loss I was into. So it works to HOLD "BAD" stock on your wrong calls too. Even if they cost you money. I sometimes hold as much as 10%. XD

My "cost bases" skyrockets due to my counting the fees and losses I had on the play, all into my cost per share, but that sometimes still proves to be cheap stock if it recovers.

I will at times have 4 times (4x) the current price as a cost bases, but stocks will go up on down the road a few months, often more than 400%.

This is especially good on very low end stocks. where you can keep say 1,000 or 5,000 even 10,000 shares of a "BAD" stock.


When the Bit ya! You can still recover if you don't just bail completely.


Did you think of that?


trants is offline   Rate this post Yes | No Reply With Quote
Old 05-04-2009, 06:34 PM   Nav to Top  #9
Kyle
VIP Trader
 
Kyle's Avatar
 
Join Date: Apr 2009
Location: Cleveland, OH
Posts: 77
Favorites: DTSI, FWLT, HSTX
Rep Power: 168
Reputation: 869
Kyle is a splendid one to beholdKyle is a splendid one to beholdKyle is a splendid one to beholdKyle is a splendid one to beholdKyle is a splendid one to beholdKyle is a splendid one to beholdKyle is a splendid one to behold
Default

Hey Trants, what is your advice for someone who has has little cash to start with? Most of my positions are small that trade commission eats up about 2% of the cost bases. To reduce cost, I try to minimize the number of transactions as much as possible. Do you think your strategy will work in my case?
Kyle is offline   Rate this post Yes | No Reply With Quote
Old 05-04-2009, 07:51 PM   Nav to Top  #10
terson
VIP Trader
 
terson's Avatar
 
Join Date: Apr 2009
Location: Richmond
Posts: 59
Favorites: LVS CPRK
Rep Power: 169
Reputation: 903
terson is a splendid one to beholdterson is a splendid one to beholdterson is a splendid one to beholdterson is a splendid one to beholdterson is a splendid one to beholdterson is a splendid one to beholdterson is a splendid one to beholdterson is a splendid one to behold
Default

Originally Posted by Kyle View Post
Hey Trants, what is your advice for someone who has has little cash to start with? Most of my positions are small that trade commission eats up about 2% of the cost bases. To reduce cost, I try to minimize the number of transactions as much as possible. Do you think your strategy will work in my case?
Hi Kyle

I have the very same situation as you. I started with around $3000-4000. The commission per trade is $29 each way... That's really increase my PPS. An other problem of the high commission would discourage me from averaging the PPS by "sell and buy low" (As the commission to average down is $58!!!). That is what I do now:

1. $2000 +/- $500 per stock!
2. Find a broker with very low commission $5-10 per trade.

It works for me so far..
terson is offline   Rate this post Yes | No Reply With Quote
Reply

Tags
FREE STOCK


Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On