Replies to post #291 on anEck Semiconductor ETF (SMH)

[LisaAu]

There are three possible states to this system:

Long - Shorts are not options here.
Neutral - No position, a watch the market only situation.
Short - Longs are not options here.

The current state is Long.

If one decides to exit at EOD and the state remains, for example, Long, the following AM there is the option to reenter the market at a favorable time.

There are times in a particular state when it is opportune to add to positions. The second buy today at 28.05 is an example of such an event.

[compadrejt]

The could also be a gap up. So the moto is "No pain, no gain".
I have a short term buy signal for the NDX also. Let's see where it takes us from here. This has the potential of turning the trend back up.

[bbgold]

Hi Lisa,
Looks as though you have been doing well by putting more thought process into how to enter and exit a trade. I would lean more towards 'exit when a formal signal to sell is generated'. That of course leaves open the question "What is the sell signal?". Did your previous Long trades use any kind of a stop loss limit , trailing stop or Sell target? I was reading somewhere on iHub 'The Exit can often be more critical than the entry on a trade'. With all of the money I have lost by not sticking to a stop loss limit on a lot of my trades I would agree with that statement. $30 could still be resistance on SMH but a pullback might find support for a move higher. Are you going to be looking at a sell on tomorrow's gap up or setup a trailing stop to take advantage of any continuation of this move? It is always Nice when the decision is to take Profits or not. The harder decision is when to take the Loss IMO. I am sure that with continued speculation you will find something that fits your own risk tolerance.
Keep Rocking Lisa! :^)