How to Avoid Exiting Winning Stocks Prematurely
How many times has fear made you exit the market too soon and miss the big move? Yet other times you may stick with the losing trades too long. How to avoid exiting winning stocks prematurely and how to exit at trend reversal decisively are the two challenges that traders and investors facing.
Following are a few charts to show you how AbleTrend can help you to stick with the winners.
AbleTrend support levels help you to stay with the winners with confidence
What if you can systematically define the true market support levels – the periodic market floor while buying? Then you can place your protective stops based on those levels. If the market resumes the current trend, it will not take your protective stop; but if market trend has changed, it will hit your stop but you will not lose too much. AbleTrend T2 indicators have been doing good job with risk control by putting your stop loss at the previous lower row of dots away from the price, not the dot under the price.
For buy positions:
- Small blue dots below the bars are T2 weekly support levels;
- Buy when you see blue bar, large blue dot and small blue dot all show up;
- Place a stop at previous T2 weekly support level;
- You may exit at the next bar open when you see the bar close below the T2 previous support level;
- Or exit the market when you see the large red dot.
For sell positions:
- Small red dots above the bars are T2 weekly resistance Levels;
- Sell when you see red bar, large red dot and small red all show up;
- Place a stop at previous T2 weekly resistance level;
- You may exit at the next bar open when you see the bar close above the T2 previous resistance level;
- Or exit the market when you see the large blue dot.
Will these stops work?
You can test the stops with 10 years of historical data with weekly price bars. The market is the ultimate judge. If you see things happen more often than others, you have built confidence using them in the real trading.
In the upcoming email we’ll show you how to identify trend reversal so that you can exit the position with confidence.
To help you get ready to take full advantage of the upcoming market trends we are making you this special offer.
As always, please feel free to forward this email to your friends.
With Warm Regards
Grace Wang
AbleSys Corp.
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