Wednesday, June 18, 2008

Managing the Trade: Partial Profits in BEXP

In my last posts I talked about trade management. Today's trade is an example of how I manage a swing trade in a momentum stock. I took a 500 share position in BEXP on Monday at $15.50. My intitial target was set at $17.50. I exited half my position at this price for a $500 gain. I have no moved my stop up to 15.50 and will let the remaining shares ride until my stop is hit or I get another significant gain. Most traders love to be in this position because there is nothing to lose at this point. I have locked in my $500 gain and could make much more if the stock continues its uptrend.

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