Ask Colin

EXIT STRATEGY

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  1. How can I manage the order in which I sell parcels of a stock for tax purposes?
  2. What do you do when a stock has gone up a great deal?
  3. How do you deal with the situation where a stock has broken below the trendline but resumes it's uptrend?
  4. If a share drops suddenly with no chance to exercise my stop loss, should I sell the next day, or wait for a rally, closing the gap, and then sell?
  5. Although I am trying to trade a big trend, I find it difficult to sit through corrections of up to 25% because there is no support level at a higher price at which to set my stop-loss level. Any comments?
  6. I have looked at the HIH chart and I do not see a standout event where I would have closed out a long-term investment. When should it have been sold?
  7. How do I avoid being shaken out when good stocks suffer sharp falls and then recover?
  8. I sold shares that later rose. The missed gains would have exceeded losses on the rest. Should I have just held them all?
  9. Would you sell a stock if its uptrend became significantly overstretched?
  10. How do you trade a fast-moving trend where there are no obvious troughs to use to read the trend and set stops?
  11. Why do you exit trades on daily charts rather than weekly closing prices?
  12. If a stock gives a sell signal, should I wait until the dividend is paid before selling?
  13. If your stop-loss or protect profit stop is hit during a day, but the market closes above your stop, do you still sell the next day?
  14. You have suggested selling a stock once it starts going sideways. How do you determine when to sell in this situation?
  15. Is it better to sell when a stop-loss is hit, or wait to sell into the first rally?
  16. What do you mean when you say to sell a stock if it stops trending up?
  17. Could profits be taken on a long trade using the Chartcraft method, rather than waiting for a sell signal? If so how?
  18. Suppose the market crashes on one day and all your positions hit stop-losses? Should you sell? Commentators tell us not to panic.
  19. I read your recent article (Shares August 2002) in which you described the candlestick reversal patterns "Hammer" and "Hanging Man". Are they buy and sell signals respectively?
  20. Please comment on Tomato Technologies (TMO) price movements, in particular what price indicators would you have used to generate a sell signal during that period, and at what point was that signal given?
  21. I am tracking the daily and weekly moving averages on a stock I bought, but they are giving different signals. How do I use them to exit the trade?
  22. How should stops work on downward breakouts where there is no prior trend?
  23. When does a long-term holder sell one of his favoured long-term investment (dividends in retirement) stocks? I ask this in view of the HIH debacle. I have looked at the HIH chart and I do not see a standout event where I would have closed out a long-term investment. I have not owned HIH but I do find the thought of selling my CBA (with its capital gain and ever increasing dividends) quite difficult. Do you simply dump all stocks as soon as they make a lower high and lower low or is there another rule for closing long-term stocks? If there is another rule what is it?
  24. What methods do you use for getting out of a stock if its rising trend fails?
  25. Which one indicator is best to identify strongly trending markets?
  26. I have invested in Estar (EST) at 37.5cents and now it is 13c. I also bought Seafood Online (SFO*) at 0.11c. You said the public sell low and professionals buy low then sell high. What should I do now? *Note: SFO since delisted - Colin