10 Selling Tips by Thomas Bulkowski
Psst, Here’s A Secret
Do you spend as much time deciding to sell as deciding to buy? Here are 10 tips to make deciding when to sell easier.
The stock of Ferro Corporation (FOE) has flatlined like a dead animal since November 2013. It is now 2015, and I have more than doubled my money. Should I sell? Every trader or investor must answer that type of question for their own investments. In this article, I’ll discuss 10 selling tips to help you find your answer.
Tip #1: Use stops. This has to top the list of selling techniques because it makes the process simple. If you use a stop-loss order, you can quit worrying about when to sell. The order will take care of that. All you have to do is locate the stop in the right place. Stop placement is an art beyond this article, but if you are having difficulty, use a volatility stop.
I learned about volatility stops from Perry Kaufman’s book A Short Course In Technical Trading. The idea behind a volatility stop is to place a stop far enough away from the current price to avoid being stopped out on normal price movement. A volatility stop works well when no other stop locations are nearby...