Investor's Business Daily Anchorage, Alaska Message Board › Tim's Four Questions to Ask for Knowing When to Sell as Presented on 2/7/2013
|Floyd J. Damron||
For those of you that missed Tim Reazor's 2/7/2013 presentation, he gave us four defensive questions for the stocks you own as follows:
1) Has my stock's price broken below the 10 week/50 day or 40week/200 day moving average?
2) Has my stock's price gapped down?
3) Is my stock selling off in heavy volume (is the pink or red volume bar showing increased selling)?
4) Has the market direction changed (from being in confirmed uptrend)?
If 2 of these are yes it is a time for extra caution. If 3 are yes, probably time to start selling to take your profits.
Also, if your stock is up 20 to 25% from purchase price, it may be time to start taking some profits too, unless you are holding a stock that is up that much in two to three weeks, then you apply the 8-week rule. (See IBD for an explanation of the 8-week rule.)