RE: Beginners Questions
I have a question about the management of existent positions.
1) When market situation is changing - but only progressively - let's say we have a bull market, and some signs of weakness appear (bad A/D line, eventually breaking the MM30h, even for a moment, and so on). Let's say that the bull ratio is no more 10/10, but only 8/10. Do you prefer cut your positions, or let them being cut by the existent stoplosses ?
2) Same question for sectors. Let's say I buy a Auto&Parts stock, the sector being strong. After that, the sector indice weakens, but my stock is still going further. What would be the best solution ? Close the position ? Getting out ?