Since yesterday, I was weighing whether or not to sell my position and take my profits, after all, it’s been 3 days of gains from my entry price of $35.40 and the stock is now at $36.50 for a gain of $1.10. But the all-time trader’s wisdom “let your profits run” is on my mind — and while it is difficult to think of losing profit already made, one has to “let go” and follow one’s rule or system for exiting or selling to profit. I personally look at the following whether to sell or not (yet!)…
Market Understanding
> increasing volume of buyers – check!
> expectation model – it has a $2 range and we’re still at $1 with room to move further
> checking economic calendar – the new US Fed Chair Janet Yellen speaks Tuesday this week, she is expected to continue to be “friendly” to the markets.
Trading Psychology
Last night, as it is my habit, I was tracking the stock price at close and saw that it is already at Resistance of 36.51. I remember on my previous blunderous years ( hehe) I would be shaking already to take my profit, and add to that reading news that S & P Futures is on decline. I did feel a little nervous, but knowing that stocks could still fluctuate through the session, I immediately started some techniques to relax and “think away” from the market. After all, there’s nothing I could do till my trading day opens.
So let the trade move along. If it’s moving in your favor, keep sailing.
