Showing posts with label managing positions. Show all posts
Showing posts with label managing positions. Show all posts
Friday, July 25, 2008
In a classic sell on the news, EZPW announced good earnings then reversed from its high over $18 to $17.24 on twice its normal average daily volume. Because we have over a 40% gain in little over 4 months, I would take 33% off the table, and manage the rest of the position. As a general rule of thumb whenever I have a 25% profit in a position, I sell 20% and manage the rest. If I have a 50% profit, I sell at least a third to 40% of my position. If I am lucky enough to have a 100% profit, I sell half and play with the house's money.
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