Q: I am looking for advice on how to handle the small cap growth stocks in my TFSA. I find it more difficult to sell a stock rather than to buy it as either greed or ignorance or dismissal of all the relative facts get it in the way. For example , I rode EGLX all the way to nearly $10.00 only to watch it fall to its present price of my initial cost of around $ 1.90. The market was strong, it recently listed in the US, ; things were great but then they weren’t. I need some non emotional, logical tools with which to make selling price decisions on these more volatile stocks. A suggestion of some technical measurements for these types of stocks would be helpful.
I have considered a stop loss formula of say a certain % increase would trigger a certain % stop loss order. For example at a 50% increase I would implement a sell order at 10% below current price or a 100% increase ( to be so lucky again) would trigger a sell order of 20 %. Being human I would probably kick myself if watching a 100% gain ( actually only 80% if I used this formula )go on to a 150 % gain, only to be stopped out at a much lower price !
Thanks
Derek
I have considered a stop loss formula of say a certain % increase would trigger a certain % stop loss order. For example at a 50% increase I would implement a sell order at 10% below current price or a 100% increase ( to be so lucky again) would trigger a sell order of 20 %. Being human I would probably kick myself if watching a 100% gain ( actually only 80% if I used this formula )go on to a 150 % gain, only to be stopped out at a much lower price !
Thanks
Derek