RE: Beginners Questions
I started a position in CCT.L in December. In January it has rocketed away. This is great, I am about 50% up after a 11% gain today. However, I am now concerned that I might be bitten by a parabolic move as I've had stocks move up this quickly before only to loose it equally rapidly, all above a rising MA. Stop loss currently set at 252p. Given the rapid rise and hence risk of a rapid drop I could take 1/2 my position as per the book. However, I'm thinking of an alternate plan, set a stop loss for 50% of my position at say 335. That way if it dives I have locked in a significant profit and if it continues to climbs I have the whole position.
Thoughts?