My stop management plan:
- Ensure all stocks have break even stops in place. Its my general rule never to let a winning position turn into a loss, once its had a number of days to move in my favour.
- Provided price remains above entry price, stocks with relatively minor profits I will move (or leave) protective stops at a point where a minor retracement to prior support will not trigger the stop. In other words, if I have the profit room to do so, I will risk some open profits to keep the stock in play as long as higher swing highs and higher swing lows are in place.
DIA example:
If long near 107 then there is ample room to tolerate a pull back first to prior resistance which should at least attempt to hold as new support.
05.03.08 09:28 #