So, for the first time I have a stock up over 20%--actually 2 of them:
ERS & AP. So here's the dilemma, what to do about it?
Everything I've been reading says that the biggest problem traders have
is selling winners too soon and holding losers too long. So I should
keep them.
But IBD says that if you're a beginner or in a dicey market, consider
selling when your stock gets up 20-25%. So maybe I should sell.
But IBD also says that if your stock goes up that 20% in less than 4-8
weeks, you should consider holding that stock for 8 full weeks because
you might have a really good stock. So I should hold.
I think what I will do is bump my stop up really tight on ERS so that it
will sell at 20% if it falls much. And AP I will let ride and might
even buy more of.
On another note, ABAX has me scared. It dropped 10% today, before
earnings even came out. I had a ~12% up in it, and now it's 0.10 above
my original purch price. Blast. But was that people just trying to
lock in profits, or someone selling that knows something? The #s came
out after close, and they seem phenomenal, and after hours trading was
up. But I'm not sure what the EPS estimates were, or if they beat them
by enough. I'm leaving my 8% stop in there. If it hits, I'm out a lot.
If it moves up, I might buy more.
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