DSX hit my 20% sell rule on Thursday when it surpassed $35.00 so I took my 20% gain off the table. I know that my rules say to hold onto a stock for at least 8 weeks if it rises more than 20% in a 3 week span, but I had to leave town and I placed an order called a SELL LIMIT order. Basically what that order says is to SELL my stock then it hits a LIMIT. Use this example: You are in a car entering a highway at 50 mph. Putting your foot on the gas you accelerate. But when you accelerate to your goal of 80 mph, your car shuts the engine off and you immediately find yourself at your destination. You won! Same same with the stock - once your stock accelerates to a certain dollar amount, the stock is sold and profits are secured. I bought DSX at $29.10 and $29.60. I set my 20% target at $35 by placing a SELL LIMIT ORDER and walk away from the computer knowing that if the $35 target is hit, I have made my 20%. In my instance, I go to Las Vegas, win $2K playing craps, come back home, look to see I am at my destination - a 20% profit on DSX. Won at Vegas and in my stocks!!!
I was finally happy to see JASO took off too. Let's see how far this one can go.
So I was running back through my old trades and was checking out MR. I bought MR near $37.90 and my 20% target was $44.85. If you look at the attached chart, you will see that the stock topped out at $45.19 and has turned tail back down to near my original purchase price. This of course is the optimal set up where I got out near the top. Does this happen all the time? No, but more often than not this situation occurs. Notice on the chart however that the 50 day moving average (blue line) is acting as "support" and may allow the stock to take back off to the upside.
OMCL was sold out near $28 and it rose to $31. It is back down to near the original point where I took my 20% profit. I would wait until this stock retraced a little bit more closer to its 50 day moving average before considering buying it again.
Good luck trading.
JD
So I was running back through my old trades and was checking out MR. I bought MR near $37.90 and my 20% target was $44.85. If you look at the attached chart, you will see that the stock topped out at $45.19 and has turned tail back down to near my original purchase price. This of course is the optimal set up where I got out near the top. Does this happen all the time? No, but more often than not this situation occurs. Notice on the chart however that the 50 day moving average (blue line) is acting as "support" and may allow the stock to take back off to the upside.
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