Managing a trade

Jun 16, 2023 10:28 AM 1 Answers
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Hi Marty,

Again, thank you for all you teach and your great stock selection! Thank you also for all the explanations you are giving on bounces off the 10 & 21 day lines!

I have a question regarding how you manage your trades. I know you mentioned that you sell at 5% loss no questions asked. With gains, you sell 30% of your position at 10% gain, 30% at 20% and let the rest run.

That is the plan!

I noticed that you excel at the early entries! Can you kindly clarify if your 10% gain is based on your early entry or is it possibly based on the traditional buy point?

A 10% gain is from my entry ... no matter it is a standard buy point, and early entry, or a pullback to a moving average. If I buy a 10% position in a stock I want to take 1/3 off at a 10% gain.

Also, how do you manage risk on the remaining 60% after the first tranche has been sold? And the remaining 30%? Where/how do you put your stop limits, in case the stock turns on you? Do you use trailing stop limits? Or do you raise the stops as you reach certain gains? Or do you simply use the 21 day line...?

I do not use stops when I am home in front  of the computer. I do use stops when traveling or unable to monitor my stocks.

If I have bought a stock at $100 and it trades to $110 I usually take 1/3 off the table. If it trades to $120 then I take another 1/3 and let the rest run. At that point it has already been a great trade. But, we still do not want to lose money. I will typically find a weekly low and if it takes out a weekly low then I sell the rest. We do not want to be holding stocks making new lows.

Thank you Marty again for all you do! I very much appreciate it and am learning a ton!

I am glad this service has been useful for you!




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Jun 16, 2023

Thank you so much Marty!  That makes a lot of sense, and will help me! 😊

Michael DiMascio
- Jun 21, 2023 10:31 PM
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Great questions!

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