Letting profit run in swing trading - Weekly Market Roundup 1st Sep 2018
Channel: Trading Profitably
Date: 02/09/2018

Letting profit run in swing trading - Weekly Market Roundup 1st Sep 2018.

Instruments Discussed: USO, GLD, SPY, QQQ, DIA, IWM, CYH, I, AZUL, GOL, EA, BBY, AKRX, FEYE, COTY, MO, UTX, etc.

In stock market investing, there is a concept of letting profit run. It says that one may not be in a hurry to close a profitable position but to let it run. In real life, it is not easy to execute that principle in swing trading. Not when stocks are often turning down in a bull run eroding significant profit. The challenge is more severe for swing trading than long-term investing. Trying to let profit run may actually result in the stock turning down and hitting the stop loss. How to operationalize this apparently useful adage of letting profit run then?

One way CUE traders employ is to book partial profit quickly, at initial profit target. That is usually hit in three to five days for swing trading. And then they use trailing stop on the remaining position trying to let profit run. That way, CUE traders take some money off the table. And ensure that as a whole, the trade is risk-free once the initial target is reached.

In this market roundup, I look back on several recent forum trade ideas where CUE traders could book profit. And where the situation was favorable to let profit run.

Of course, as usual, we discuss the usual top-down market analysis covering market breadth, sector-industry rotation, stock fundamental and peer analysis. Time to grab a drink and hit the play button.

This is a demonstration of the way Superior Profit Community members trade Stock, Stock Futures, and Stock Options to generate consistent profit from Stock Market.