Category Archives: Sell Rules

Sell Rules – Plan Ahead

When entering a trade, you need to plan on your exit strategy. This article on Investors.Com page has a sample list of reasons to sell a stock or option. Don’t Wing It; Follow The Rules When You Sell An article by Vincent Mao has his tips on the Investor’s Corner of Investors.com. To highlight a few of them: • Cut losses at no more than 8%. • Lock in gains when they amount to 20% to 25%. • Don’t let a big gain turn into a loss. • Closing below the 10-week moving average in significant volume. Consider selling if a stock closes the week Sell when stock ends below its 10-week line in volume that’s at least 40% above average. For the whole article and the rest of their tips, go to the link above. Remember to plan ahead to preserve your capital! Happy Trading! William