My FOREX trading strategy has not translated well to stock purchases. I purchased CIGX and JMBA last week, strongly believing they met all my criteria for going long.
But that was with the old EMA 100 strategy.
I've yet to try one stock with the Two-Touch Bollinger Band approach.
I'm having a bit of mental block with finding the pip value equivalent to stock prices. Pips don't necessarily equate to cents. One option in my exit strategy for this approach is to take a profit at 20 pips. How can I possibly apply that to a stock like JMBA? Should I be thinking in terms of percentage gains?
My gut tells me I should aim for a 3% gain with each of these trades. The problem is I don't want to miss out on a potentially lucrative stock run. Taking a profit at 3% when a stock has a 10% run will feel like a failure.
I need to devise a way to lock in a 3% gain but still leave myself available for more profits, should the opportunity present itself.
A trailing stop loss percentage seems to be my only option.
Perhaps tomorrow I'll make my first purchase under this new strategy!
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