Hanging onto winners [is my problem]! I see profits and get too excited and take them early. Your book is helping my mindset to let the winners run and more importantly why. I will get better!
What is your system and time frame?
I aim to keep it as simple as possible. I focus on companies growing revenues 15+% per year. I initiate a position when the 20 day simple moving average crosses above the 50 day simple moving average. Then I double the position once the 50 day SMA crosses above the 200 day SMA (if it has been below 200 SMA). I like to continue to pyramid into the big winners (e.g. 100-100-50-25-10-5 shares or something like that). I am going to get better at letting winners run out long term though! I have in the past picked the juicy looking fruit too soon. (I’m determined to improve at this, your book is helping my mindset a ton! I cannot thank you enough.) I risk 0.5% to 1% of my total account per trade and I use a 10% stop loss. Some trades I will use a 15% stop loss depending on how volatile it is. I take profits if the price drops 10% or 15% off the peak price of the trend. Being born and raised in Texas, I can’t help myself from buying oil and gas stocks after it has been in the dumps and starts an up trend (same method as above). I have also traded with GSG (commodity etf). Time frame holding depends on what happens with the price. I’ve never shorted anything, but am becoming interested in that from studying your materials. It just makes too much sense to follow the price action up or down instead of trying to guess at valuations. I previously studied lots of value investing stuff and found it just didn’t sit with me well when actually participating in the markets. I felt lost with no real plan. However, having a system based on actual prices like mentioned above makes it much more robotic and I really like that.
Sorry got a little long winded!