I found a good guide for screening good momentum stucks but it doesn’t really explain much on when to sell. Could some of you give some guidelines or some tips on when to sell?
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I found a good guide for screening good momentum stucks but it doesn’t really explain much on when to sell. Could some of you give some guidelines or some tips on when to sell?
Related posts:
That’s the $1 million dollar question. A momentum stock is just that a stock with great momentum, the key is when do you sell. Classic example RIMM (maker of the Blackberry) has run from $90 per share to $240 over the past 6 months. It split 3 for 1 and is trading at around $82 ($246 pre split) but during this time it has been from $240 to $190 and back to where it is within 2 weeks. If you play momentum you should set your gain and / or lost in advance and be happy when you get your return. If you have a sell in for 20% above what you paid, be happy, if it goes up 50% move to your next and don’t worry about it. Same if you have a stock loss in for 10% under what you paid, if you get stopped out, move on to the next opportunity.