[isatrader]

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?

Firstly well done. And it's always a hard decision to make of how to deal with a position once it goes parabolic like it has, as you want to hold out for as much as possible. Tightening your stop loss on 50% of the position size seems sensible, or you could switch to a trailing stop loss method like Elder's Safezone on the weekly chart - which you can find on prorealtime to use on UK stocks. Or another trailing stop loss method, or just watching the price action for clues as to when you think it's peaked.

Unfortunately there's no easy answer, as at the end of the day it comes down to a judgement call. But it's a good problem to have at least...