I have a question about how to manage the position, when a stock moves on (in the good direction).
In Stan's book, the basics are: when a stock is bought and goes in the good direction, we should wait until it falls down, until the SMA30weekly (eventually a little bit over or a little bit under the SMA), or the SMA10weekly in the "trader" strategy. When the stock goes further again, and is about of reaching his last top, we can move the stoploss, which must be placed under the last low point AND under the reference SMA (SMA30w/SMA10w). When the SMA starts to weaken in its progression, we still put stoplosses under each new low, but without considering the SMA anymore. But this last point is out of the scope of my question.
My question is: when you move the stoploss level, do you consider the level that the SMA30w/SMA10w had at the moment of the low or the level that it has when you move the stoploss ? And, to go further in this idea, do you eventually move the stoploss following the SMA, provided that the stoploss stays under the last low ?
I hope I'm clear. Not perfectly sure about that.
To make it more clear. Let's take the case of Airbus, which had a bull trend in 2013.
The stock could be bought at the start of 2013, when breaking out (low volume, but that doesn't matter here). At the start of april 2013, the stock falls down a little bit to 37. In may, it moves over again until about 42.5. Probably a good first point to move the stoploss. Now, the stoploss should be put under 37 (precedent low) and under the SMA30w. If I consider the SMA's level of starting april 2013, I'd put my stoploss at something like 31.5 (line A). But: if I consider the level that the SMA has reached in may 2013, since the precedent low, I could put the stoploss a little bit over (line B: around 35). Some weeks later, I could even rise the stoploss a little bit, when the SMA becomes higher than the precedent low. The stoploss could be put just under 37.
So, if you were on this stock on may 2013, would you have put your stoploss at 32 and wait the next low/high cycle, or put it directly at 35, maybee even 37 some weeks later ?
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