As we observe, US market major indexes have been rallied since early of the year mainly boost by AI frenzy. And for the recent 2 weeks, the market seems to begin to pullback especially on the AI related theme stocks. For me, I am more towards technical trade for my entry and exit. For my holdings, I will usually take partial profit if the bullish stocks drop below EMA10 trendline support and will fully lock my profit once the stocks continue to breach below EMA25 support.
Well, this strategy works pretty fine for me. We need to understand that we cannot earn every cent from the market, see profit takes profit is good enough.
The current market correction (20-30% for some stocks) is attractive for mid term traders who have higher risk tolerance level and looking for higher potential return than short term trading. Since the short term trend is still bearish, one could wait patiently for the global stock recovery for the next few months, then buy those stock with strong fundamental stocks.
If your stocks are trapped in the stock market, likely now is at low optimism, too late to sell now. Wait till the next rebound or rally above the support again, target to sell at intermediate high, either to minimize the losses (if bought too high last time) or making some profit.
Come and share your strategy with us too, guys.
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Comments
It seems like you have a well-defined trading strategy based on technical analysis and trendline support levels. Taking partial profits when stocks drop below the EMA10 trendline support and fully locking in profits when stocks breach below the EMA25 support is a disciplined approach.
It's important to remember that no strategy can guarantee profits in the market, and it's wise to have a risk management plan in place. Your strategy of taking profits and not trying to capture every cent is a prudent approach.
The current market correction may present opportunities for mid-term traders with a higher risk tolerance and a focus on stocks with strong fundamentals. Waiting for the global stock market to recover and buying stocks with strong fundamentals during the rebound could potentially lead to higher potential returns.
If your stocks are currently trapped in the market, it may be advisable to wait for a rebound or rally above the support levels before considering selling. This could help minimize losses or even generate some profits.
Remember, it's always important to do thorough research and analysis before making any investment decisions. Market conditions can change rapidly, so staying informed and adapting your strategy accordingly is crucial.
Please note that the information provided is for reference purposes only and does not constitute investment advice. Investing in the stock market involves risks, and it's important to consult with a financial advisor or professional before making any investment decisions.