The Second Strategy is Not Really a “Strategy” – It’s a Buy and Hold while Setting a Windfall Profit GTC Sell Order

Risk less aggressive, but you will see up and downs.

Here is how this works:

  • Pick those you like.
  • Set an entry price you like.
  • Place a buy order in.
  • Once confirmed set an extraordinary profit GTC Sell Order that would capture a huge profit should the stock spike. I do these generally at 50%. Anytime I see a 50% profit, I generally take it and reassess.

I realize this is simplistic, but one can easily over think any strategy.

When do you sell? 

  • When you see the profit you like.
  • When the company puts out a press release you see no recovery from.
  • When you about even, but the money is now more critical to you due to other obligations or liquidity issues.

What is the potential to do well?

Like above, it comes down to the stocks you pick. You must watch the news. If you suddenly see your overall portfolio in this sector has a gain of 20% or better, consider taking that gain. If you are uncertain about any of these that you buy into, watch that calendar as suggested above in the first strategy. Dump that stock in advance of its next likely news release or quarterly financial release.

A WORD OF WARNING:

Remember the famous words: “A rising tide lifts all boats.”   It works both ways. Watch the overall markets. If the markets get “October Fever” close out where you are at even and above. Losers decide if they are coming back.

Always watch the insiders. Are they selling? If so, get out. None of these have meaningful selling of insiders. That’s critical.

 

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