I would like to focus on several excellent questions discussed
by Michael Covel in his book:
Trend Following: How Great Traders Make Millions in Up or Down Markets
1. How do you determine what market to buy or sell at any time?
2. How much of a market should you buy or sell at any time?
3. How do you determine when to enter a market?
4. How do you determine when to exit a losing position?
5. How do you determine when to exit a winning position?
However, I would like to structure these questions specifically to the stock market (for the purpose of this blog audience) and answer them to the best of my abilities while anticipating comments from readers (for your answers):
1. How do you determine what stock to buy or sell at any time?
Hint: Stock Screens & Scans
2. How much of a stock should you buy or sell at any time?
Hint: Position Sizing and Expectancy
3. How do you determine when to enter a stock?
Hint: Risk/ Reward strategies
4. How do you determine when to exit a losing position?
Hint: Sell Strategies
5. How do you determine when to exit a winning position?
Hint: Taking Profits
I will follow up with detailed answers after you give the questions some thought. Hint: Answers to these questions are all over the blog – see categories and the archives for further clues.
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