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Hold or Sell? Use this Strategy‏

Have you ever been in the situation with your stock or option position where you are unsure if you should “hold” or “sell”? I don’t know about you, but I find myself with this problem every day. The good news is, there is a very straight-forward and highly effective solution to this problem as I explain in this quick tip video.

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Transcript:

- Do you ever find yourself in the spotwhere you don't know whether you should hold your shares,or sell your shares?I find myself there every single day.So let's talk about a very easy way to relieve this problem.Hey it's Clay Trader at ClayTrader.com, in this video,like I said, I want to talk about how you can solvethe very common problem and the problem that I faceevery single day is, should I sell my shares or shouldI hold on to them?I get emails all the time about that very same thing.I don't know really what to do, you know, I'm up onthe trade but should I sell or should I hang on to?And I have no idea, but like I said, I come across thisevery day but it doesn't need to be complicated.The complicating thing that creeps in is right here,what does sell mean?This may seem like very straightforward, but I speakfrom experience with the emails that I get and the questionspeople don't truly understand what sell means.A lot of people go right here, they think sell meanseverything, so that means if I have 100 shares that meanswhen I sell I have to sell 100 shares.If you're options trader, you know, I have five contracts,so when I sell that means five contracts.A lot of people think sell means everything.Other people think that it means that the trade is over.Meaning when you say sell, that implies that the tradeis over, not true, but with that thought process,it can create the over complication that just isn't true.And then finally a lot of people are just,well it's gotta be all or nothing.Either you're in the trade, you go all in, and thenbecause you go all in then you gotta get all out,so it's just all or nothing.But none of this is true, this is not what sell means.Very common place but just not true.Because we have a beautiful word out there in the worldof trading known as partial.Meaning you can do a partial sell.Now what does this mean for you?How does this help alleviate the situation of do I holdmy shares?Do I hold my contracts?Or should I sell them?Well like I said, I experience this every day, so let'stake a look at this right here, and let's just saythis is the current price.So current price is at some level.And you're sitting there saying well, should I sellor should I hold?Well why not do this?Why not sell half?So if you have, let's say, 100 shares, sell 50 of themright at this level.If you have 1,000 shares, sell 500 right at this level.Now why would you do that, what are you accomplishing?Well in it's very simplest form, this is risk management,you are actually managing risk.Maybe you've never looked at it that way but it's very, verysimple way to not only provide a solution to the commonproblem of should I hold or should I sell, but it's alsojust good money management and good risk management.So how does this help?Well let's just take a look at two things, let's takea look at kind of two camps.So the price, let's say it heads up, or the pricemay head down.So let's look at it from the people that are over heresaying all or nothing, all or nothing, alright well,the price goes up, you know, they're feeling pretty good,right?Okay that's great, that's great, the price went up,good thing I didn't sell down here.But what happens if it goes down?How are these people feeling over here?They're gonna be suffering from this, "I should have"regret, should have what?Well more than likely they're gonna be saying I shouldhave sold, I just should have sold, and they're gonnabe angry at themselves, they're just gonna be very, veryupset, I should have sold when the price, when I hada chance up there.Well what about the people that are gonna stick withthe partial sell?What happens if they sold half up here?And then the price comes back down?You know, they're gonna still have some pain, so there'sno doubt about that, but their pain is gonna be relieved.So pain relieved, meaning yeah, they're still technicallylosing some money on what they could have had up there,but at least they sold half, so that is certainlygonna relieve the pain that these people are certainlysuffering, there is no regret over here because, hey,you know what, at least you sold a half from your positionup here.Now what about this side of things for the disciplinedpeople, well you know what?If it goes up here, these people are going to be veryexcited, meaning if you did a partial sell, hey you knowwhat, not only, sure you kind of left some on the tablebecause you sold some at a lower price, but at leastyou can still participate.And this is, you know, a very simple but very importantword in terms of the market, you want to make surethat you can participate in upwards movements.But you wanna manage that downside risk, you wanna manage,well what happens if this really is the top, what happensif this price is done going up?That's why selling half, it really accomplishes so manythings, it covers the bases in case the price goesback down and you can say hey look, I sold the top,I didn't sell everything but at least I took some profitsoff the top.But if you're wrong and it's not the top, and here'san FYI, you're never gonna know whether or not it's trulythe top, but if you're wrong and it's not the topit still goes up but hey look, I can still participate.Whereas these people, let's say they decide, you know what?The people that just think everything, all or nothing,they're like you know what?I don't know, I'm just gonna sell everything right here.And then the move happens to go up here, talk about just,we'll call it the hair pulling out, I mean the ultimatefrustration, I know I've been there before.Before I kind of learned this basic concept where,I think, I'm just gonna get it all out, I want out,the trade's over, I'm gonna sell at the current price.And then all of a sudden you see this happen, it keepson going and going and going.And had you just only sold half, you would still have half,and what, you would be able to participate still.So selling half, that's what I always tell people in emails.You know, I have no idea if your stock, I have no ideaif your option is gonna go up in price, but don't worry,I face this problem every day and whenever I am atthe situation, am at this crossroads, I just sell half,it doesn't have to be half, maybe you wanna do a third,maybe you wanna do a fourth.Maybe you wanna do three fourths, I don't know,the point is by taking some profits off the table,when you meet the crossroads of, I don't know what I shoulddo, do I need to hold or do I need to sell?You don't need to sell, you can sell but you don't needto sell everything, it doesn't mean the trade's over,it's not an all or nothing type of deal.Partial, keep that in mind, sell partial of your sharesor partial of your contracts.Lock in some management so you can protect your downside,but also, don't find yourself pulling out your hair,leave yourself an opportunity to still participateif the price goes up, so, keep that in mind as you'regoing forward, when you approach those situations,they more than likely probably happen every day, right?I mean, I'm always facing that, should I hold or shouldI sell, should I hold or should I sell?Well that's why it's all about money management,and you can ease out of the position, you can justsell partial lots of whatever you are holding,so keep that in mind going forward.If you found this video helpful, found this concept helpful,please click the Like button if you're watching thison YouTube, if you're watching this on my site,ClayTrader.com, click one of those share buttons,little clicks like that go a long way, and then of course,leave comments, I do my best to reply to everythingand interact, so be sure to do that and give me yourfeedback on this concept or just whatever else is onyour mind, so thank you for watching, get out theretrade without emotion and remember, you don't haveto sell everything, you don't have to sell, it's notall or nothing, you can do partials, so learn to lovethe word partial, because partials allow you to participate.Have a good one, trade without emotion.

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