My Strategy - Part IV - Selling

Now that I have bought a bunch of stocks when do I sell them? Lets review the strategies I follow:

1. Too extended - Sometimes these fast movers get too extended, even by their standards, a pullback is eminent. I sell some on strength and then if it pulls back enough, buy back some. Sometimes they never pullback and keep going much higher, tough luck, but that's okay, you made decent money on the part you have sold and you still have some which is making money. Its part of the game. Recent Example: CROX quickly moving from 45 to 60 and SNCR galloping from 30s to 45. I took some off the plate!
2. Hitting Stop - Some of these fast movers reverse and hit my stop. Sometimes I put very strict stops for half my positions and a bit relaxed for my other half. I usually put my stop below the recent low, unless it is very far down. Then I look for support areas on the charts and put my stop below that. Recent Example: SIGM - Initially stop would be below 39.04 (most recent low) lets say 38.75, but as there is no other recent low and the stock is now over 50, stop has to be raised. Look at the chart. 45.50 was resistance area, so now that should act as support, so stop goes around 45.40. Maybe half at 45.40 and half even higher.
3. Technical Sell - If the stock goes down and I have not sold yet or has not hit my stop, I might decide to wait. And it starts creating a bearish flag, then I sell right away. Recent Example: LPHI (Life Partners Holdings Inc.) From its high of 52, it fell to around 40-39. Suppose I am still holding it. Then for 2 days it created a bear flag, and I should have exited like a horse out of the gate! After that it fell like a knife!
4. Better Opportunities - I think all of us are familiar with this strategy, I spot a better opportunity, I will move money from one of my laggards and put into it. Current Hypothetical Example: I should have moved out of SILC and put my money into JRJC. I wish!

I think that's all on selling, I can keep going on and on on stops, raising stops, and also about trailing stops, but maybe I will hold for later or if someone has any questions. I do not use trailing stops with my EPS momo trades.

Cheers!

Lazy