|Brainy's Share Market Toolbox|
An arsenal of weapons to help you tackle the share market.
|Monthly Share Market eNews email update|
Exit strategies - Part 3
|eNews + eBook Articles Update ||#59 - Jan-Feb 2014|
This month's Share Market eNews email
is going to all of our subscribing Share Market Toolbox
Members as normal, and to the non-Members who have expressed an
interest in receiving it. (Non-members who want to read the detail in
the Members Area can easily join as a Toolbox Member
- it's not expensive.)
Exit Strategies - part 3
Selling to lock in profit
and protect capital, utilising
the charts and technical analysis
September last year I started writing about exit strategies because a
number of people were saying that there seem to be many different
possible approaches. And as we have found out, in doing the research and
preparing the notes, there are many, many different possibilities.
- What are we talking about? Well, many people believe that there are
appropriate times to sell an investment in order to lock in profits and
protect capital (like during a major downturn, which happens too often
So when and how should we do this? How do we decide that enough is
enough and it's time to sell? What signals can we see in the price
charts? It is actually surprising how useful technical analysis can be
in these situations.
Last September I wrote the first detailed eBook Article on this topic (TA-6031, "Exit strategies Part 1" -
and this one is free to all), and I realised I would need another one
or two Articles in order to cover the subject well enough. I like to
keep these Articles to just 4 pages so they are easier to read and
digest, or maybe 6 pages tops (or perhaps 8 pages absolute tops if
really necessary). And this month I have finished writing four Articles
on this topic - a total of 21 pages. See more details below.
had intended to complete this topic on exit strategies in January, but
the amount of material to wade through took a lot longer than planned,
so this February issue is a combined one also incorporating January. In
case you have missed any past eNews emails and updates, you can see
them here in the eNews archive.
Any non-member who no
longer wants to receive this material on a monthly basis can simply
unsubscribe from ALL topics using the SafeUnsubscribe link at the bottom
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to change your interests
. (BUT NOTE
: Toolbox Members and BullCharts mailing list members should not unsubscribe, as it will remove you from all my mail lists.) Please
remember, anything mentioned here, and in the referred eBook Articles,
is for general education only, and is not advice of any sort.
Please read on....
About the eNews emails...
Just a short note to the recently new Toolbox Members:- These share market eNews emails
always go to Toolbox Members (a part of the Toolbox service), and to
the people who have registered to receive occasional information about
the Share Market. This is a monthly email with some pointers and tips
on focused topics - see a quick intro to the eNews emails
. They often include references to specific eBook Articles
in my Share Market Toolbox
, as well as key web pages in the free area of the Toolbox (eg. on the extensive Share Market web page
I have been writing the eBook Articles since October 2008 - that's
more than five years, and these eNews emails help you to navigate to
related and useful information each month.
Robert is always very happy to receive feedback about the Toolbox, and the articles and weapons therein.
Please feel free to contact Robert by email or phone.
Price charts summarise the underlying opinions
and emotions of the market participants.
Every chart tells a story. It's helpful to
understand the stories in the price charts.
This month's focus:
Share market exit strategies - Part 3
we plan how we might exit a position, there are a number of things to
consider, and many different approaches that could be utilised.
If we want to maximise our profits, and not give too much back to the
market, then we need to carefully think about the trigger signal that
might prompt us to exit. Many people use a
plain Stop Loss, but there are ways to flag a weakening share price,
and maybe use the Stop Loss approach as the "last resort" approach if
other alternatives don't work in a given situation.
this month's update to eBook Articles, I have refreshed some of the
recent ones, and written one new 8-page Article. See the links to view
the following articles on the Articles Table of Contents page.
- Article TA-6030, "Exit strategies - Introduction" - This is free for everyone, and has only some minor changes.
- Article TA-6031, "Exit strategies - Part 1 Time, price and money exits" -
A 5-page article with some minor changes. It briefly discusses: the
time-based stop, clock-based stop, and calendar-based stop approaches;
and the topic of price targets understanding overhead resistance, the measure rule,
and round price value. It also briefly discusses money-based exits
including the use of an established support level as a stop loss, and we
throw cold water on the topic of fixed percentage stops. Oh, and the
Fibonacci Extension tool is also discussed.
- Article TA-6032, "Exit strategies - Part 2 Price chart features" - A 4-page article that focuses on chart features such as: weakening uptrend and break of trend line, lowest low of recent bars, the Count Back Line tool, and reversal patterns.
- Article TA-6033, "Exit strategies - Part 3 Chart indiators" -
This brand new 8 page article shows how a number of technical analysis
indicators can be used to help determine an exit approach, including: Weinstein's approach,
Moving Average Cross-overs, Parabolic SAR, Bollinger Bands, and
ATR-based indicators such as: Chandelier Exit, Wilson ATR Trailing Stop
and the Hull Range indicator.
- For more information about the Stop Loss approach, also see this web page.
growing collection of eBook (PDF) Articles, don't forget to see the
latest Table of Contents pages for all articles (see links in the
side-bar above right). There are
now a total of 138 Articles in this collection of eBook Articles - a
whopping total of 632 pages of information! You can see the Table of Contents for all eBook Articles here (recently new or updated ones are highlighted), and the Master Toolbox Index here.
eBook (PDF) Articles - Summary
Since October 2008 I have accumulated quite a collection of eBook (PDF) Articles
on three subject areas - Share Trading/Investing, Technical Analysis
and BullCharts software (actually more than 630 pages of material
in more than 138 articles). These Articles are invaluable for both new
and experienced investors and traders. I write brief monthly notes in
this eNews email to highlight specific Articles on targeted topics, and
sometimes referring to new or updated web pages in the Toolbox (also see
a history of Toolbox updates). I am also writing new Articles and updating existing ones as required. For more information please see:
Article front pages
For any new readers of my Toolbox eBook Articles, there are some useful introductory Articles including an Introduction and an Overview Article for each of the three subject areas. You can see them here:
What if you have some
sort of problem with accessing the Toolbox and any of these Articles? Or
maybe the Username and Password doesn't work. If there is any problem
at all, simply contact me by email or phone. The best email address for
this is: firstname.lastname@example.org
Occasionally emails disappear - the system thinks they are spam, or the
ISP might think they are spam. If I don't reply within a day or so,
please contact me by either email address or phone
is nothing secret in this email, so feel free to forward it to someone
if you think they might benefit from the information, or from being a
Toolbox Member. The easiest way to do this is to use the "Forward Email"
link at the bottom.
am also confident that my Toolbox Members won't be sharing their
username and password with non-members. It is not fair that I spend all
this time preparing the materials, and then my Toolbox Members pay money
to have legitimate access, only to let some people pay nothing to read
and view the details.
feel free to email an individual Article to others as a sample; but if
they want online access to all the materials, it is pretty cheap, so
they should subscribe as a Toolbox Member. There is information about Toolbox Membership in the Quick Links section at right.
Always happy to receive feedback, or suggestions for new content or improvements.
Until next month,
happy investing or trading,
Robert B. Brain
(mobile: 0438 355 910)
ps: watch out for the sharks in the ocean!