This morning I closed out half my positions in CLDX and SPLK for respectable gains.
My exits are still giving me fits... and I tell you, this week I've had 3 really bad ones. Here's the deal, getting out of losing trades is not the problem - it's knowing when to get out of the winners. So far this year I've been buying enough so that I can sell half at my 1st target and then trail a stop behind the other half.
So how do I set my 1st targets? It's pretty simple really... I look for moving averages - like the 50 day, or I find prices that represent previous areas of resistance.
Well this week as soon as I hit these targets and closed some or all of the trade, the stock shot right up and continued on with a big move.
It's so dang frustrating.
For example, DDD - I sold the 2nd half of my position at $30.83, right at the 50 day moving average. Which by the way, DDD had not traded above this MA in MONTHS! Sure enough though right when I sold it, the stock took off.
Similar things happened to me today in CLDX and SPLK. Oh well... I'm learning.
Either way, I booked a 4.83% gain in CLDX and 3.11% return in SPLK.
I did take a small loss today in GPRO, 1.3 percent.
I moved up my stops in SPLK (62.65), CLDX (20.15), RHT (67.50), AGEN (4.90) and BABA (87.60). These stops are all in the money assuring that none of my trades will be losers, unless of course we get some massive gap down Tuesday.
I did get in a directional option trade today, buying 2 March $55 puts in SMH.