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Two Way Radio Directory - Blog

7/30/2006

Trading method changing

Filed under: — Rik @ 9:05 am

In this climate of world volatility, the markets behave similarly. I find this unsettling and have gradually changed my trading method to try to adapt. Over the past three months this has been successful for me.

Rather than depending on trailing stops, I have begun to exit at decent gain points. When an equity reaches the 5% point, I start watching closely, and usually exit soon after.

I buy in small blocks, usually 100 shares and track each individually, selling each block as it becomes profitable. This has worked much better for me than averaging all purchases together and tracking as a lot. I have done well with MOT using this method.

I also keep an eye on a few stocks I am comfortable with and buy them on pull backs, then sell on a gain position. I rarely buy on an uptrend.

One recent success was WLV. After making some money on it earlier this year in a few days, I bought it again and sold this past week for a 25% gain on an early morning run up, that pulled back later. I believe the run up may have been shorts buying to cover.

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