Friday, February 1, 2013

Take Easy Profits When You Have Them

I took profits in DECK after a $.55 gain in about an hour.  The stock did proceed to climb another .35, but after hitting a high of $40.61 it started a downtrend ending the data at $39.92.  If had had held, my profit of .55 would have ended with a gain of only $ .22 and emotionally, I would have felt bad for not taking the gains when I had them.

Two Lessons here:
1. Follow the Trend, don't anticipate the trend.  The Long term and short term trend in DECK was up.  After bottoming around $39.41, it spiked to $39.80.  This was my trigger for a reversal to the main trend.  I waited to for it to dip back to $39.70 and held for 1 hr for a quick .55 gain.

2. Bulls make money, Bears make money, Pigs get slaughter.  Dont be greedy in trading stocks.  Take gains when you have them, not when you have too.  There is always tomorrow for another trade.

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