Here's three simple rules for when to sell:
* Take some profit when a stock goes up to 20 – 25% from base, unless the stock rises 20% after your purchase within 8 weeks.
* Consider selling in 1/3's. This Floydian Thirds philosophy has you lock 1/3 of profits of 20%, 1/3 at a next defined upside, say 38%, and holding the final 1/3. The goal of Floydian thirds is to have gotten out your base investment with returns and let the final third "run".
*Set strict stop loss rules of "25% trailing stop loss".
And here's a "flyer" stock. Remember, these are stocks that I don't post to our portoflio, or track, but I think are worth review for stock traders. Valero Energy is on its way down, and it pays a 3.1% dividend.
The above chart is a traditional 3:1 ratio chart. Experiment a bit on sizing, and any buy near 17.50 is a strong low, using a stop loss at 15.50. And, a selling top at 23.00. This method of buying/selling is based on traditional Pnf techniques. Don't hesitate to ask questions.
This is a runner stock. You're on your own, using the above parameters. Good trading!
