Here is the link.
Knowing how to handle a stock over long periods of time is an invaluable investment skill and a key aspect of how to buy stocks. Here’s how to trade around a core position and manage through the ups and downs.
Determine position size
- 10% of your asset, 10 stock
- Work on stock position - initial position
3:29
Adding to a position
- Rallies from 25 to 40
- Pulls back to 35
- Stock tests 10-week line
- Add another 2.5% or 5%
- bounding off support line - institutional support -
- Sell as shares reach various profit targets
- 20% profit zone
- 10% extended above 10-day line
- Sell in quarters or thirds
- Target multiple stocks in a single industry group
- Start two or three stocks at half or quarter
- Add to the outperformer that proves itself
Trading around a core position refers to a strategy where you maintain a long-term investment (the core position) while actively trading smaller positions around it. Here's an example:
Let's say you have a long-term investment in a particular stock that you believe will grow over time. This stock is your core position. However, you also notice short-term price fluctuations in the stock due to market volatility or news events.
In this case, you can take advantage of these short-term fluctuations by trading smaller positions around your core position. For example, if the stock price temporarily dips, you can buy additional shares at a lower price. Then, when the price rises again, you can sell some of those shares for a profit.
By trading around your core position, you can potentially increase your overall returns while still holding onto your long-term investment. It's important to carefully analyze market trends, set clear entry and exit points, and manage your risk when implementing this strategy.
Remember, trading involves risks, so it's essential to do thorough research and consider your own risk tolerance before making any trading decisions. Happy trading
No comments:
Post a Comment