Taking Profits, continued
Key Points To Remember
- A simple, clear-cut strategy is to sell after your stock has gained 25%, unless the stock has gone up 20% in just one to three weeks.
- Stock charts are especially helpful in spotting signs of weakness in stocks, often providing clues much earlier than any fundamental indicators show.
- Look for climax runs, exhaustion gaps, failed breakouts, significant violations of the 50-day moving average and other characteristics of a weakening stock.
- Remember to check the overall market. If the market comes under distribution and weakens, your stocks will have a hard time making any further advances.
|
|
Related Resources:
Review IBD's 20 Rules For Stock Market Success.
Go to the Investor's Corner Archives to read IBD's "editor picks" of classic Investor's Corner columns.
Search our archive of Ask Bill O'Neil Q & A's organized by topic.
|
| |
|
|
© Investor's Business Daily, Inc. 2000-2008. All Rights Reserved. Reproduction or redistribution is prohibited without prior authorized permission from Investor's Business Daily. For information on reprints, webprints, permissions or back issue orders, go to www.investors.com/terms/reprints.asp.
|
