"Every stock is different. Every sector is different. You have to adapt."
How Does
@Qullamaggie Adapt Sell Rules?
General Approach
Base Breakouts: For stocks emerging from long, solid bases (e.g.,
$DXCM,
$AVL,
$VEEV), prefer weekly moving averages (10-week or 20-week) as stops to give them more room.
Extended Stocks: For stretched rallies (e.g.,
$AYX), use daily moving averages (10-day or 20-day) instead of weekly. Adjust as the averages catch up.
Small-Cap vs. Large-Cap:
Small caps (e.g.,
$PLUG,
$BLDP): Often non-institutional, volatile. Use daily stops—either they surge 50–100% fast or fail.
Large caps (e.g.,
$BABA): More stable; rely on weekly charts (e.g., 20-week MA) for stops.
Stock-Specific Examples
$DXCM:
Broke out of a long base with strong earnings.
Partial trim when it closed below the 20-day MA, but kept most shares.
Stop: 10-week and 20-week MAs.
$AYX:
Extended rally; weekly MAs too far below.
Stop: Daily levels (10-day/20-day MAs). May switch to weekly if averages catch up.
$AVLR:
Long base breakout → weekly MAs for stops (not daily).
$VEEV:
Slow-moving; tightened stop slightly to avoid retesting lows.
Prefer quick stopouts to reallocate capital.
$BABA:
Stop: 20-week MA (large-cap, institutional holding).
$BLDP /
$PLUG:
Small-cap, speculative → daily stops only.
Sector Considerations
Gold Stocks: Avoided despite breakouts. Hard to trade—often commodity-driven, not fundamentals.
Key Principles
Adaptability: Rules vary by stock (base length, extension, sector, cap size).
Risk Management: Favor tighter stops on slow/speculative names, wider stops on strong base breakouts.
Efficiency: Cut laggards early (e.g.,
$VEEV) to focus on better opportunities.