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.
I decided to get back in the Stock Market. I guess I never left, but I haven't been very active, like I used to be. I took my Christmas break time off and decided to start looking at picking stocks again. I have followed RealMoney.com for years and always like Rev. Shark commentary, but never acted on any of his stock pics.
I would describe James "Rev Shark" Deporre as a momentum trader. He goes with the flow, long or short. This style of trading requires constant attention on your stocks and you need to be willing to do allot of flipping. He breaks all the traditional rules of buy and hold. He believes that as a small investor, our best edge is that we can be nibble and and get in and out of Stocks very quickly. He does not mind selling and sees selling as our edge over the big institutional investors.
He has a paid service that you could sign up for where he gives more stock picking advice. It is free for 30 days, so I decided to sign up during my vacation and if I made money I would pay the $80/month service.
Well, one month later and I and up over $9000! Needless to say, his picks have worked out great!
Below is all my closed trades to date! I haven't closed a losing trade yet!
Below is an interview with Rev. Shark, where get goes over some of his ideologies.
