Taking my Profits

1 Sep

My coworker has become somewhat a stock mentor to me.  He’s been gradually telling me of his trades and how he profits from them.  His method is swing trading.  Stocks are volatile meaning there are opportunities for you to get in and out.  Of course, you need to watch the support (floor) and resistance (ceiling) point.  Here is a link to explain further more:

http://stockcharts.com/help/doku.php?id=chart_school:chart_analysis:support_and_resistan 

Little by little, I’m beginning to understand and see his strategy.  Over the years, I’ve grown attached to my stocks.  It’s time for me to let go of my stocks and take profits where I can, instead of watching them go up and down from my buy in price.  Currently, I have thirteen stocks in my portfolio.  Today, I sold my holdings in Potash Corporation and Cliff Natural Resources at a profit.  In total, I’ve trade three times for those two stocks with a gain.  If I had kept them, I wouldn’t be any better off.  There’s no looking back to revisit the what ifs or not…

Steps to Taking Profits

  1. Downsize my portfolio:  don’t spread your money in too many ways
  2. Trade only 2-3 stocks at a time: the more shares you buy, potential risk is greater to go in either direction
  3. Buy in at the support and sell out at the resistance:  monitor the stock rigorously
  4. Set a monthly profit goal:  $500/mo
  5. Emotion in check:  Try to look forward instead of backwards
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