Exit guidelines for swing trades | stockbee


Exit guidelines for swing trades

Exit if a stop is hit. Always use stops. I recommend trailing stops.

Exit on 3rd or 5th day (for $ b/o) if stock does not move much post entry. Most of the momentum bursts have immediate follow through.

Exit at least 50% of position on third or fifth day at close. Have a trailing stop on remaining position to lock in profits.

After your entry next day or same day if the stock goes up 8% or more exit 50% of the position and move trailing stops sufficiently to protect profits.

Exit a stock in pre market or at open if it gaps up 20% or more after your entry next day or third day.

After 3rd day if you want to keep holding keep using trailing stops.

If you use trailing stops it will automatically get you out of position.
These guidelines are based on 20 years of experience swing trading   and making thousands of trades and growing account multi fold.


shyam said...

great tips!

Zoomie said...

I am a very, very long term reader and fan :). I am ready at the start of next month to swing trade, however, I have a day job that keeps me busy throughout the day. If I use weekly charts for setups, would a 4% breakout work as well? I am about to run some scans for research, I thought I would ask for your opinion as well.

Thank you so much for your many valuable lessons over the years!