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Posted On: 02/16/2019 8:46:10 PM
Post# of 27273
Traders Rules That Work!
Investing rules — judged by the American Association of Individual Investors as one of the most powerful among more than 40 different strategies on how to invest — advocate taking most profits at 20% to 25% and cutting losses at 7% to 8%.
These are not just numbers pulled out of thin air.
Research into the biggest stock market winners shows that when a stock breaks out and gains 20% to 25% or so, it often takes a break before moving up again. The decline may usher a pullback to the 50-day moving average, or a more drawn-out correction that results in a whole new base.
Most stocks that go on to big moves also don't fall more than 7% to 8% below their buy points soon after the breakout.
Investing rules — judged by the American Association of Individual Investors as one of the most powerful among more than 40 different strategies on how to invest — advocate taking most profits at 20% to 25% and cutting losses at 7% to 8%.
These are not just numbers pulled out of thin air.
Research into the biggest stock market winners shows that when a stock breaks out and gains 20% to 25% or so, it often takes a break before moving up again. The decline may usher a pullback to the 50-day moving average, or a more drawn-out correction that results in a whole new base.
Most stocks that go on to big moves also don't fall more than 7% to 8% below their buy points soon after the breakout.
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