[mucked4u]

Bob don't fret. Your in a good place for education on the Weinstein techniques.

[Joe725]

I have a very stupid question about when to exit a trade. As my trades increase in profit so far I have a few doing well which include NIO do i just up my stop loss via the 52x ATR Average and then leave when the stop loss is hit or should I enter a trade with an ideal profit I would like to take in mind?

[isatrader]

I have a very stupid question about when to exit a trade. As my trades increase in profit so far I have a few doing well which include NIO do i just up my stop loss via the 52x ATR Average and then leave when the stop loss is hit or should I enter a trade with an ideal profit I would like to take in mind?

It depends on the time frame that you are trading, as you should have an exit plan before you open each trade and they should be consistent.

Generally if only swing trading for weeks or months then it can be good idea to exit the majority of stocks once a stocks has moved +20% to 25%. If however a stock reaches that target within three weeks of entry, then you should hold it for at least 8 weeks as it's showing excellent strength. These type of rules are for bigger stocks than NIO though, as those kind of percentages apply to $20+ size stocks. So you can use the 52 week ATR instead for small cap stocks, and so if it's moved 4x the 52 week ATR from your entry instead of 20%.

If you are intending to hold for longer, then moving up your stop loss to breakeven once the stock has had it's first pullback and then made a new high is a good practice to protect the position from going against you.

[Joe725]

I have a very stupid question about when to exit a trade. As my trades increase in profit so far I have a few doing well which include NIO do i just up my stop loss via the 52x ATR Average and then leave when the stop loss is hit or should I enter a trade with an ideal profit I would like to take in mind?

It depends on the time frame that you are trading, as you should have an exit plan before you open each trade and they should be consistent.

Generally if only swing trading for weeks or months then it can be good idea to exit the majority of stocks once a stocks has moved +20% to 25%. If however a stock reaches that target within three weeks of entry, then you should hold it for at least 8 weeks as it's showing excellent strength. These type of rules are for bigger stocks than NIO though, as those kind of percentages apply to $20+ size stocks. So you can use the 52 week ATR instead for small cap stocks, and so if it's moved 4x the 52 week ATR from your entry instead of 20%.

If you are intending to hold for longer, then moving up your stop loss to breakeven once the stock has had it's first pullback and then made a new high is a good practice to protect the position from going against you.

Thanks you for the speedy response, i'll adjust my stop losses as advised.

[marry123]

Hi Isa,
Seems the marijuana stocks are perking up. CRON is starting to look good if volume comes in and price breaks above the SPX price line.
I  was wondering whether one needs to see price break above the $9 level (in addition to have increasing volume come in and price move above the SPX price line)?

As always, I very much appreciate your input.

[isatrader]

Hi Isa,
Seems the marijuana stocks are perking up. CRON is starting to look good if volume comes in and price breaks above the SPX price line.
I  was wondering whether one needs to see price break above the $9 level (in addition to have increasing volume come in and price move above the SPX price line)?

As always, I very much appreciate your input.

It's just moving into early Stage 1, after declining for more than a year and losing more than 80% from its peak. So any strong moves within Stage 1 will likely be capped by strong resistance from a lot of bag holders still hoping to claw back their loses. But you can often get a strong short squeeze in the early part of Stage 1, so very short term traders can make some good gains on those moves. But it's too early from Stage Analysis perspective, as this would be considered bottom fishing instead of buying high and selling higher that the method aims for.

[marry123]

Hi Isa,
Seems the marijuana stocks are perking up. CRON is starting to look good if volume comes in and price breaks above the SPX price line.
I  was wondering whether one needs to see price break above the $9 level (in addition to have increasing volume come in and price move above the SPX price line)?

As always, I very much appreciate your input.

It's just moving into early Stage 1, after declining for more than a year and losing more than 80% from its peak. So any strong moves within Stage 1 will likely be capped by strong resistance from a lot of bag holders still hoping to claw back their loses. But you can often get a strong short squeeze in the early part of Stage 1, so very short term traders can make some good gains on those moves. But it's too early from Stage Analysis perspective, as this would be considered bottom fishing instead of buying high and selling higher that the method aims for.

Thanks Isa.  Could you please clarify the part about buying high and selling higher  as in Weinstein's book he has examples of buying stocks that have had large declines after they break from proper bases (eg page 33 Bethlehem Steel which fell from 22 to around 5 and was then a buy at just over 9 based on it breaking above its resistance of its stage 1 base). So would  a break above 9 not be a proper buy point for CRON breaking out of the stage 1 base? CRON actually looks very similar to Bethlehem steel unless I am mistaken (with similar drops from around 22).

[isatrader]

Thanks Isa.  Could you please clarify the part about buying high and selling higher  as in Weinstein's book he has examples of buying stocks that have had large declines after they break from proper bases (eg page 33 Bethlehem Steel which fell from 22 to around 5 and was then a buy at just over 9 based on it breaking above its resistance of its stage 1 base). So would  a break above 9 not be a proper buy point for CRON breaking out of the stage 1 base? CRON actually looks very similar to Bethlehem steel unless I am mistaken (with similar drops from around 22).

Hi marry, it's on page 1 of the book.

As for CRON if you are comparing to the Bethlehem Steel example, then it's only just entered the left hand side of the shaded area in the example, and remember they are weekly charts. So the shaded area on the chart showed approximately an additional four months of basing in Stage 1 from this point before it broke out, and hence the reason why it needs much more time to form the Stage 1 base. As the base hasn't formed yet. It's literary only just starting to form. and when you've had large declines over a long period the bases tend to need longer as well. So if it follows the Bethlehem Steel pattern then a future breakout above 9 might be the breakout level. However today's swing high may be the start of a lower range, and so the high of that, which is 8.13 would become the top of the Stage 1 range.

Attached is a rough example of what would need to happen to roughly mimic the Bethlehem Steel chart in the book.