We all know how to enter a position and exit when it hits are stops, but how do we properly manage a winning position by letting it ride as much possible? I will show you a very easy and effective way to catch a good portion of the move for swing traders.
The 9 exponential moving average is my go to guide for trailing a position. When I enter a position on a breakout or pullback I allow the position to start to work and move higher before I implement the 9 EMA as my trailing stop. As long as the stock is above the 9 EMA I allow the position to work. When the 9 gets crossed back below then I either sell all or half the position and move the remainder of my shares at break even or higher. Here are a few chart examples from trades we took.
Simple, Right? Next time try this out and see how your trades work out for effective swing trading. I like to keep things simple because the more complicated it is the less likely you will follow it as it will be contradicting or confusing.
If you found this useful, then join me and my members and trade with us. Entries w/ stops and trade management to ride our winners. Visit AmyAtrade.com to register!