Profit Protection - Exit Points

March 17, 2008 9:41 PM

Even if you do not short stocks or an active trader you should have an exit plan on a stock. Last I checked no stock in history has gone up forever, and many, if not most, eventually get crushed.

My profit protection calls were to exit VLO if it cleared $47.66. It crossed it early and immediately shot down to a low of $44.94. It closed at $46.69.

CHK:…down over 4% on the day from my call to consider selling and/or short.

WLT: Walter Industries was also down over 4% today. Said friday to consider exiting or shorting it.

JoyG: Down 3.31% today. Mentioned Friday to consider exiting or short it.

I also told friends that KLAC was long UNLESS $39.86 cleared, then exit. You could have exited that stock at $39.85 on 03/12. it is currently $35.62. Down 12% below where i said sell it in a matter of 4 trading days.

All 5 stocks COULD reverse, and go higher. But as I have said many times, I am not a believer in hope on a stock or the markets…. I let the markets tell me what to do…. If i have no firm number to trade off….I let others take that stock and look for another where I have more certainty.

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