▲ 14 r/swingtrading
The Best Time to Sell Is While the Stock Still Looks Strong
Beginner traders wait too long to sell.
They want proof that the move is over, so they hold until the stock starts breaking down.
By then, the easy money is usually gone.
The better approach is to sell into strength while the stock is still advancing and other traders still want it.
That is often where you get the best fills and avoid giving back a large part of the move.
3 Reasons Selling Strength Works
- Demand is still there If a stock is still climbing and attracting attention, buyers are actively supporting the price. That gives you a better exit than waiting for momentum to fade.
- Crowds are usually late When a stock still looks strong to everyone else, many traders are still bullish. That is often the moment when you can exit into eager buyers instead of chasing weakness lower.
- You protect gains before the trend cracks A strong stock can reverse fast. Selling while it still looks healthy helps you lock in profits before the chart starts sending warning signs.
A simple way to sell into strength:
Use the ATR percent extension from the 50 MA to know when to trim into strength. When the stock is more than 7 times the ATR multiple above the 50 MA, that is generally a good time to start trimming your position
Then trail the remaining size until price closes below the 10 MA or the 20 MA.
u/lordvladislav — 1 day ago
