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Originally Posted by KCUnited
Legit interested in learning more about selling points, not just for ZOM but in general.
Which stocks or investments are considered long term holds and how is it determined?
Where do people put the profits from swing trades? Other than more swing positions that is.
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My technique for swing trading. Typing on phone, be kind!
Read my long post on selling. Swing trading is about small gains and trimming out of stocks with 5-10% gains and raising stops to breakeven. Trying to be 50-60% successful and having gains double your loss percentage.
I only hold long term stocks that have good fundamentals. While swing trading is all about technicals and charts, I don’t care if it’s a good company long term. I’m trading stocks on current action which is taken solely from the chart.
Profits are just moved to the sideline until other setups are found for entry. Mid February I was 100% invested. With the drop at end of February I was only 30% invested. Today I’m 50% invested until I see where this market heads and I find new setups I like. The biggest mistake is rushing to get back into trades if the market is trending down. This just gets you stopped out and results in too much failure.
Example of some recent moves. I bought PYPL and SQ on Friday as they retraced prior breakouts. Today I sold both for 6% profit. That money is now on sidelines. Monday I initiated AAPL position on retrace too, and today I sold 50% of that position for 4.25% gain. I moved stop on remaining position to breakeven. I bought shares of COOP last week on its new breakout and today it’s at net profit of 7% for me. I trimmed 50% of position there today and raised stop on rest to previous days low. I will see if this runs to 10-15% profit and get out. Got into ENPH today on what I hoped was a light pullback at 181. I set stop loss at 175 right after purchase. I got stopped out 2 hours later for 3.3% loss. I thought entry was a small enough risk to take but it didn’t rebound. But that’s what assessing risk does for you, 3.3% of a full position is only .4% of my total account value.
Hope that helps.