When to sell if your winning stock?
Sell when it hits the major resistance.
Sell when it hits your trailing stop loss.
There are many ways depending on your strategy.
I added Cirtek Holdings Philippines Corporation (TECH) in our Short-term Trading watchlist (stock recommendations for short-term trading) last August 30, 2018.
That’s right! At Equilyst Analytics, we have stock recommendations for short-term trading and long-term investing. So whether you want to focus on short-term trading or long-term investing or you want to do both, we can cater to you.
We traded TECH twice.
Round 1: August 30, 2018 – September 19, 2018
Gains: up to 20%
Round 2: September 27, 2018 – October 31, 2018
Gains: up to 15%
I recommended using a trailing stop loss. It’s a stress-free strategy for selling either at a loss or gain.
I’ll dissect our trade setup for you (non-subscribers). If you’ve learned a thing or two, please comment below this article and let me know.
Round 1 Trade Dissection
Here’s what I posted on August 30, 2018.
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It looks like TECH has respected the support at 29.00. The disclosure about the buyback program may have triggered traders to become bullish this morning.
The resistance is at 34.80. There’s an upside of more or less 10% with respect to the current price of TECH as of the time of writing this post and its resistance.
Understand that this is a quite risky trade setup because I’m looking at an “anticipation play” only. My buy signals aren’t confirmed yet.
Like what signal? For example, TECH’s price is not yet above the 10SMA and MACD is not yet above the signal line.
As usual, calculate your trailing stop loss to protect your capital, preserve your gains (if any), and prevent unbearable losses.
Trading participants of TECH with a 100% Buying and Selling Activity as of Aug-30-2018 at 11:07AM:
9 out of 40 participants or 22.50% of all participants registered a 100% BUYING activity
12 out of 40 participants or 30.00% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 31.7458
Top 10 Players’ Selling Average: 32.0032
The psychological average price of the top 10 players as of Aug-30-2018 is from 31.7458 to 32.0032.
Refer to the chart below for the possible candidates for an entry price. Where are they? They’re the longest bars with the highest number of trades. Please look at the chart. They’re distinguishable.
If and when the price starts going down to 29.00 again or wherever your trailing stop loss is, consider cutting your losses.
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September 3, 2018
On 3 September 2018, I reiterated to our clients that our trade setup for TECH remained valid. I also gave the price points that got the biggest volume and the highest number of trades.
September 5, 2018
I had the same bullish sentiment on September 5, 2018.
September 6, 2018
By the end of trading on September 6, I told our clients that TECH was already moving above the 10SMA and MACD was poised to make a bullish crossover above the signal line. I also reiterated that I found TECH more bullish on that day than the previous trading days.
September 10, 2018
On September 10, I informed our clients that TECH was finally moving above the 10-day moving average and MACD was above the signal line. If you are my regular visitor and reader of my articles, you know my 10SMA-MACD combo. You can use the search box of this website to read my write-ups regarding this combination.
Know that I do not just post updates every other day. I post updates every single day. I am only publishing select posts to dissect our trade setup so you can learn a thing or two on how we gained 15 to 20 percent trading TECH.
September 20, 2018
On September 20, some of our clients even got the chance to rake in up to 27 percent gains trading TECH. That is if they sold at P40.00-apiece.
I also pointed out that EVERGREEN was the “jockey” of TECH and that they should also monitor this broker’s moves in the succeeding days.
September 21, 2018
On September 21, I advised all clients to stick with their individual trailing stop loss. Those who were not able to join the ride on the first round were advised to buy the dips when the opportunity arises.
Summary of Round 1
Those who traded TECH on August 30 and applied 10 percent risk earned 15 to 20 percent in this round.
Now, let’s proceed with the trade dissection of the second round of trading TECH.
Round 2 Trade Dissection
On September 27, I advised all subscribers that TECH closed with a green candlestick but volume was relatively low compared to the previous days’ volume. The price was still below the 10SMA but MACD remained above the signal line. On the other hand, Stochastic was heading toward the southeast direction (bearish signal).
You can see how indicators can have opposite views at times. This is where experience can be more useful.
So, I advised our clients to buy in tranches if they would want to piggy-back EVERGREEN.
Remember, in round 1, we monitored EVERGREEN’s moves.
September 27, 2018
October 4, 2018
I provided daily updates. For brevity’s sake, I’ve skipped the screenshots of the previous days. Now, on October 4, we spotted EVERGREEN buying aggressively at 35.70.
October 13, 2018
The aggressive stance of EVERGREEN was noticed on October 13. Nonetheless, the ascent of TECH made us do an upward adjustment on our trailing stop loss.
October 16, 2018
The chance to take home a bigger gain was intensified on October 16, 2018.
October 19, 2018
A quiet day was noticed on October 19, 2018. Nonetheless, it wasn’t a call out to sell.
October 24, 2018
I gave our clients some technical updates. The Top 10 Players chart wasn’t captured on the screenshot below but I gave them updates about the top 10 players’ buying and selling averages, too.
October 26, 2018
Our clients were informed that the trade setup for TECH was still valid. However, a bigger volume was needed to sustain its ascent. The actively traded price points were given as usual.
November 3, 2018
I posted on November 3 my EOD update for October 31, 2018. The 40-44 forecast did not see the light of day because traders decided to rake in profits near 39. That was where the resistance was. Thankfully, we employ a trailing stop loss. Whether you are right or wrong with your data-driven forecast, your capital is protected, your gains are preserved, and unbearable losses are prevented when you are using a trailing stop loss.
I continuously provided daily updates for TECH in its thread in the Private Clients Forum for the benefit of those who applied more than 10 percent risk in their trade setup.
Summary of Round 2
Those who played TECH again on September 27 and applied 10 percent risk earned up to 15 percent in this round.
All in all, the combined earnings on TECH is estimated between 30 to 35 percent.
Key Realizations
- It is an advantage to know the price points that got the biggest volume and the highest number of trades. Our Price-Volume Distribution chart can give you that information.
- It is an advantage to know the top 10 players’ buying and selling averages. Our Top 10 Players chart can handle that.
- It is an advantage if you have mastered one or two combinations of indicators. One indicator will confirm the sentiment derived from the other indicator.
Alright! Did you learn something from this documentation of how we traded TECH?
It would be nice if you can comment below the best part of this documentation that you liked. Feel free to comment your questions, too. Thanks for reading!
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