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Message: Re: spikes up

Dec 11, 2010 11:27AM

Scone, you are most welcome. I believe that several minds are better than one, and even though I've been trading a long time, I'm always learning new things - often from this hub.

Spiking stocks are a major challenge. There's no way to tell how high they will go before they fall. It's easier to sell into strength, so I usually sell them off in bits on the way up. I sold 20% of my PZG yesterday. I also expect it to go a lot higher, but I like to take a little off the table in case I'm wrong. My basic rule for exiting completely is a break of the accelerated trend line (daily or hourly depending on the pace of the spike).

I have one more rule for selling spiking stocks, but it doesn't apply to all of them. If a stock has 2 consecutive big up days, and gaps up the next morning, I sell at the open. An example is ABR.v. I sold bits of it on the way up on Thursday, and the remainder yesterday morning. My system isn't foolproof, but I'm comfortable with it, and it generally works for me.


Dec 11, 2010 04:14PM
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Dec 11, 2010 05:20PM
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