Scale out to close positions

Dahutu

Remember someone asked how to sell stocks. Here is one way...

Assuming your entry signal is from a statistically sound system and you have determined your stop (refer to Cobra's post about stops or purely mechanical stop setting using Turtle's stop loss rules...)

Let's further assume you have an initial stop loss of 10 points, divide your positions in 3 equal lots, sell two lots when price moves in your favor for 10 points (you can have this number less than 10 but more than 5 to ensure yourself at least break even once the other lot would be stopped out), leave the remaining one lot running with initial stop and establishing a profit target at next major resistance and support in your time frame chart...

In this way, once the market moves in your favor for more than half of your stop amount, you can get into a situation that you would at least break even if you use half of your stop to establish profit taking target for your first 2 lots while the remaining lot can still be potentially profitable... you would be already in the money if you use more than half of your stop as profit taking target for your first 2 lots...

This might not be the way to maximize your profit, but it can help you to manage your positions psychologically.. Once you have 2 lots closed, you know you can let the remaining lot running free until your next target is met ( no shake would bump you out unless you are stopped out)..
[ 本帖最后由 Dahutu 于 2008-9-1 04:17 编辑 ]

飞来鸡毛

受教，谢谢老大 觉得你的这个建议也可以帮助更好的利用资金，比如我本来是一笔$100资金，一个stop loss, 但是如果按照你的方法, 我可以投入$300资金，其中两百用于帮助break even. 因为这两百的目的不是要赚太多，所以stop loss可以设的高一点。这样的话，资金利用好了很多，而且风险也比做3笔$100资金，3个一样的stop loss 好。。。青蛙的一点感想，请指教。 另外觉得其实应该有很多资金管理操作上的技巧，老大有没有什么这方面更多的建议，或者什么书可以推荐，谢谢。

小咪

顶部

happypuppy

valuable lesson indeed!

shi33

thanks

roamerroamer

好策略，推荐给动不动就满仓的青蛙们。

whzdf

谢谢！