Monday, April 9, 2007

Entries Are Important, Exits Are Critical

Everyone is focused on entries and live exits to his\her intuition, emotions etc. It is a rare situation when a non-professional (our sevice adresses mostly them) trader has a precise exit strategy and follows it. Exit is much more important than entry since it is exit that creates profit or loss.

By my research, trailing stop shows positive result even if you enter RANDOMLY. Statistically, of course. I would say that entries do not play that big role, that exits do.

Here's an interesting post I've found this morning:
Entries are important, but exits are the key. In my estimation, no entry should ever be made unless the exit strategy is in place first. I believe a trader needs to have an initial exit that is predefined and that is close to our entry. He should then continue the exit strategy by following behind a positive movement with some exit method such as a trailing stop loss, or by moving a stop loss, or by having an alert that he follows, etc. Again, the trader's business plan should incorporate the exit strategy that will be used and then it should be followed. Read the whole article.

As for the the exit strategy, please, consider using Sell@Market. This is right what it is being developed for.

Thursday, March 29, 2007

Are you selling your stocks at the right time?

Limiting your losses and protecting your gains is the most important rule for every investor. Unfortunately, with the high volatility of today's stock markets, making an efficient decision on selling your investment is riskier and consumes more time than ever. Statistics show that most intuitive, individual investors lose this game sooner or later.
When it comes to the stock market, there is no place for emotions or intuition. Believing otherwise has led many amateur investors straight to bankruptcy. If you want to become a successful investor, you must exclude emotions from your trading, and spend some time on choosing a trading strategy that is right for you.
How would you limit the losses? It is all about selling at the right moment. A successful investor never puts emotions into trading, and sells as his sell strategy suggests. Ask yourself: what is my exit strategy? If you don't have a sell strategy, you don't have any trading strategy at all!
There are many trading strategies available, all having their pros and cons. Most require you to monitor your stocks very closely. If you don't have much time to spare to watch your investment, a strategy based on the Trailing Stop method may be right for you.
The Trailing Stop method has strong benefits over alternative trading strategies. A Trailing Stop limits your losses but not your gains, while not requiring you to constantly monitor the market to achieve best results.
It does not perform miracles, but uses proven, published mathematical methods to maximize your gains and minimize losses. Speaking broadly, the Trailing Stop method has to deal with just two things: the current stock price, and the stop selling price that represents the moment at which to sell your shares.
Without going much further into the complex mathematics, the Trailing Stop method raises your stop selling price when the stock goes up, but holds it when the stock goes down. If the stock falls enough to reach the stop selling price, a strategy based on the Trailing Stop method produces a recommendation to sell immediately. This strategy effectively limits your loss to a pre-defined percentage of your investment, while at the same time not limiting your potential profit.
A modified version of this strategy based on the Adaptive Trailing Stop takes an additional parameter into account. The Adaptive Trailing Stop method ties its selling recommendations to stock volatility, which represents how fast the particular stock can rise or fall. Volatility is arguably the most important factor when it comes to the decision to sell, as it is closely tied with the stock's risk factor. This method works best for modern stock markets, as today's stocks can start moving very fast.
Developing and following the right strategy can be a difficult and timeconsuming process that does require certain skills in higher mathematics. If you don't have that much time to spare, try using a service that does all the monitoring and calculations for you, and gives you selling recommendations in plain English.
Sell@Market (http://www.sellatmarket.com) is a brand new service that uses the Adaptive Trailing Stop method as the sell strategy. It tracks and analyzes stock quotes daily on all major exchanges, including AMEX, NASDAQ, and NYSE, and re-evaluates the profit to risk ratio according to the chosen risk strategy. If a stock being monitored matches certain criteria, Sell@Market emails you a recommendation to sell.
There is nothing that even the best strategy can do to protect investments if an investor is not following its recommendations. Sell@Market helps you protect your investments by excluding emotions from trading. Just check your email daily and follow the system's recommendations to maximize your gains and minimize losses.
Always sell your stock just at the right time with Sell@Market! Try the service free of charge for 30 days. Sign up at: http://www.sellatmarket.com/signup.

Wednesday, March 21, 2007

Sell@Market: a “when-to-sell-shares” service

Sell@Market is an implementation every successful trader’s rule of thumb - “cut down you losses and let your profits grow”. It is a stock monitoring system based on a widely recognized (volatility) adaptive trailing stop. Whenever Sell@Market detects that it is high time you started selling your stocks, it sends you an email notifications. Remove emotion from trading - give it a try – you will never regret it!


Sell@Market is a comprehensive stock monitoring system incorporating a simple and reliable concept, which has been widely recognized among financial experts worldwide – Trailing Stop. Not only does it use this concept, but takes its functionality even further by making it adaptive. Adaptive Trailing Stop monitors the volatility of your stocks and dynamically adjusts the trailing stop percentage. It enables you to efficiently cut down your losses and increase your revenue by determining which minimal price should generate a signal for selling stocks. The system does not only accept a specific value from the user, but calculates the most probable stop point using the stock volatility data and allows for three risk level settings, so you can adjust the system according to your purposes and the level of risk you are ready to assume, from the loss-sensitive low level to the risky, but potentially more profitable high level.

Whenever Sell@Market detects that it is high time you started selling your stocks, it sends you an email notification with clear explanations and stock fluctuation graphs. Therefore, you will always be in-synch with the market and will never have to spend precious hours recalculating your stock value and assessing risks.

Stock trading and market analysis require a great deal of time, patience, experience and composure. This is an arena that does not emotions come into play, for they can undermine what has been built for weeks and months and jeopardize your financial security. When it comes to stock trading, our emotions must be harnessed to give way to logic and market laws. If you are looking for an affordable, elegant, functional and user-friendly solution that will help you efficiently monitor your stocks round-the-clock, pull over, because you have just found it. Just sign up, add your stocks to your watch list and enjoy a care-free life! Sell@Market will save your time, nerves and make you richer, so give it a try – you will never regret it!