Thursday, January 11, 2007

HOLDING OVERNIGHT

From a post at Stockfetcher from someone asking about holding over night on big breakouts.

"What about BHIP?
But do you hold them overnight?"

Holding overnight for me depends on a few things but mainly if a stock is in a huge 1 day breakout like FMDAD was on it's FIRST breakout day AND it held it's gain well into the close of the day,like it did ,I will hold overnight as these very often will gap up on the next open,just like FMDAD did.

I will sell by 10:30 most times as these tend to fade after 30-60 mins after the open.Many times you can get 20% or more from the stock.

An example today is
OBCI that brokeout huge yesterday.It held good into close considering it was up 200% at one point yesterday.

This I would hold for the expected gap up on todays open and set a MENTAL trailing stop to lock in profits.

Let's see what OBCI does at open.

(This is Muddy's post, not mine.)

2 comments:

Muddy said...

This strategy worked perfect today.
OBCI ran up 18% to it's HOD until exactly 10 a.m when it began to fall back.
By 10:30 it was RED !!

A 3-4% trailing stop gives it room to run while protecting a real nice additional profit.

Elle said...

You could set a clock by your alerts Muddy. Went red at exactly 10:30!