Being totally new to this, I was after some ppls ideas on protecting profits once they rise and protecting capital if they fall in a long position.
I have read "Trading your way to financial freedom" by Van K Tharp (one of the most confusing books I have read, not really related to Australia, not enough examples, who cares about corn bushells in the US and is really for traders not those of us who prefer to go long and invest) but I need ppls ideas on where to set stops to protect losses and if I have a freak that runs (like a bull) how do I protect my profits?
Being a nut I just bought a bunch of shares with the amount of cash I had, but being the technologist I am I am big on research, so I spend countless hours researching commodities, markets, companies, EPS's P/E's and so on, so I believe I have picked some fine companies for future growth and profits in the right areas.
I am not prepared to just sit back and check on my investment in 12 months time, I like to keep tabs on my dough and if the timing is right and flog it of and buy back in (which I could have easily tripled my money since my first buy in mid December).
My shares are doing fine but if I had not been so loyal I could have made more money. Do I ned to buy a program worth 1750 bucks to do long positions and set stops or are we really just in it for the long haul (5-10 years) and hope for the best. I'd like to get the best out of my dough, as we all would, so how should I be tackling this for long positions and what can I read in order to enlighten my noggin ( in retard language) to help me along.
FMG, BHP, FDL, MGX