tag:blogger.com,1999:blog-30128229.post6565328187558777242..comments2023-09-30T07:11:55.493-06:00Comments on MarketFN.com: Stock Trading Exit Points & The 'Little Voice'Investment Househttp://www.blogger.com/profile/14771320644915759241noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-30128229.post-56270012170801028052010-12-13T09:28:26.848-07:002010-12-13T09:28:26.848-07:00You raise an important issue, Don. Since it sounds...You raise an important issue, Don. Since it sounds like you may not be using a tax professional you may just want to Google "wash sale tax rules." The IRS also sets out the rule with example I believe in their publication 550. It really isn't all that hard to do (like many things) once you know how.<br />Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-25042429173820149522010-12-13T07:25:22.141-07:002010-12-13T07:25:22.141-07:00I like the statement "I've heard it said ...I like the statement "I've heard it said that some of the best traders will enter or re-enter a position 4 or 5 times before it goes their way". I think part of my hesitation comes from just not wanting to do the accounting for tax season on the wash sale. Can you point me to a good article on how to handle wash sales? Maybe if I understood it a little better it wouldnt bother me.Donnoreply@blogger.comtag:blogger.com,1999:blog-30128229.post-6366869904568772502010-12-12T14:04:33.433-07:002010-12-12T14:04:33.433-07:00What happens when it falls before hitting your pri...What happens when it falls before hitting your price dzinto? You automatically cut your profits and as far as I can tell let your losses run. This is based on thousands, not dozens, of trades.<br />Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-81137057653670066992010-12-12T14:00:41.338-07:002010-12-12T14:00:41.338-07:00Thanks, Phil.
Bill KraftThanks, Phil.<br />Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-68621702017064435042010-12-12T13:59:56.860-07:002010-12-12T13:59:56.860-07:00Aye, there's the issue, Tony. Market makers kn...Aye, there's the issue, Tony. Market makers know generally where the stops are going to be anyway so I think the key is to put stops close but just out of reach and that can come only with experience. Mental stops are fine IF the trader actually acts when they are hit. If he doesn't, mental stops are useless. Thanks for an important comment.<br />Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-37331393247031740092010-12-12T13:49:19.160-07:002010-12-12T13:49:19.160-07:00Thanks, Anonymous and congratulations.
BillThanks, Anonymous and congratulations.<br />BillBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-16815609420284022312010-12-11T10:13:56.165-07:002010-12-11T10:13:56.165-07:00Setting stops is too often practically a guarantee...Setting stops is too often practically a guarantee of the loss. Trailing stops as well. This is based on dozens of outcomes of trailing stops on Ameritrade.<br /><br />Setting a simple limited sell upward gives much, much better result.<br /><br />The reason is in inevitable momentary fluctuations of the price. Some spike on opening that lasted for 5 seconds and then instantly recovered, but your stop has been activated. Perhaps if it was possible to set stop only reacting on "true" decline in price (for example, lasting for at least X seconds), but it's not possible, and spikes are way too frequent to ignore them. With that in mind, only the stop protecting from really catastrophic loss makes sense. Way, way below the current price.<br /><br />Equally, some momentary spike upwards rips you the profit. The stock trades at 50, you set sell at 55, and 3 days later you see it's sold, even though that 55 was hit just once on opening for 3 seconds, and then went back.dzintohttps://www.blogger.com/profile/05521705084211279701noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-13815745634719652462010-12-11T09:49:34.818-07:002010-12-11T09:49:34.818-07:00Hi Bill, I'm hosting a blog carnival for trade...Hi Bill, I'm hosting a blog carnival for traders and investors. I've enjoyed reading your articles for a few years now, and would like to include them in the carnival. It's easy to submit articles. Check out the site and see if you might be interested.<br /><br />Thanks, RichRichhttp://www.deadcattraders.com/carnival-traders-investors-november-17-2010/2010/11/17/noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-53850413005787163562010-12-11T09:15:29.986-07:002010-12-11T09:15:29.986-07:00This is the best and most important column that yo...This is the best and most important column that you have ever written, I know from experience and have paid the price many times over for having ignored the concept.<br /><br />PhilPhilhttp://pqkatz@comcast.netnoreply@blogger.comtag:blogger.com,1999:blog-30128229.post-63551925367530564072010-12-11T08:02:46.410-07:002010-12-11T08:02:46.410-07:00Holding on to a predetermined stop is not my probl...Holding on to a predetermined stop is not my problem. Wheather or not to use a mental stop or place a mechanical stop is.Would prefer using a mechanical stop but doing this reminds me of playing blackjack in that one is showing the dealer where he or she is going to fold ahaed of time !!Would like commeds on this paranoia.<br /> TonyTonynoreply@blogger.comtag:blogger.com,1999:blog-30128229.post-35904170736338097722010-12-11T07:23:23.437-07:002010-12-11T07:23:23.437-07:00Bill: Great article. I used to be a charter memb...Bill: Great article. I used to be a charter member of that club. Has the exit strategy in place and then dropped it before it executed ... and then lost a TON. Today I have religion and I never bail on an exit strategy. I get ticked when my stop is right where the stock turns around and heads back up but not mad enough to violate the rule on the next trade.Anonymousnoreply@blogger.com