Frequently Asked Questions

Market Lab Report
How do you decide to sell your positions?

We use a number of selling guides which depend on position size, condition of general market, price/volume action of the stock itself, and moving averages. Because of this, while we may use a violation of a moving average as a guide, we may sell earlier or later, depending on these other considerations. Being flexible with changing market conditions can enhance returns, but it can also reduce returns if one lets one's emotions get in the way of the facts of what they are seeing. As you can see, selling is part art, part science, part left-brained analysis, and part right-brained analysis. In earlier days, the use of a hard set of sell rules which were statistically viable which worked well. We share those rules on our website and in our book as they continue to work well.

Published: Apr 29 2011