Q&A  |  MAR 2008

Q&A by Don Bright

Q&A by Don Bright EXITING TRADES I’ve been trading for about a year. I’ve started using a combination of gray boxes, which keeps me focused and disciplined. My entries have been consistently profitable and timed well, but my exits have not been because I always sell too early. My most profitable system has been to pick the strongest 30 stocks every day, and by strong I mean what doesn’t go down when the market is going down — my gray box then buys them after 2:00 pm Eastern time on a moving average convergence/divergence (MACD) crossover with a midrange relative strength index (RSI). Right now, my exits have been when the MACD crosses back down, but it’s not great and I know there’s better. What do you look at to exit long positions on strong stocks? What’s the best way to use stops? — Joseph Klar Your entry time is generally a good one, after the lunch hour(s) in New York. I’m going to assume you’re daytrading and not keeping positions overnight.

by Don Bright