Strong Hands Syndrome

Over the past weeks, I noticed something peculiar with my trades. Most of them had gains initially but once I sold them they were either below or near my buying points. Looks like my system needs some calibration on sell points. I've coined a new phrase for it, "Strong Hands Syndrome"

I'm gonna wreck your profits!

This is the opposite of the event called "shaking out the weak hands". Weak hands usually sell at the first sign of weakness then is left watching or having to buy higher when the stock rallies again. 

Having strong hands syndrome could also mean that you are a little greedy or too optimistic in that the stock will just go through previous resistances. Sometimes selling while the stock is going up is a good strategy. Have to remember that not all stocks go to ceiling or two. 

This has reminded me of a colleague who always says the following quote: 

That is to remind us that we should not be too hopefool* or greedy. Taking profits is never bad. What is bad is when the supposedly paper profits turn into smaller profits or even losses instead when we wait too long. The challenge is finding the perfect balance of when to take profits and when to hold. Maybe a combination of the selling on resistances and holding till end of the day is needed. I've retrofitted my mainframe to practice selling on resistances but it is a hard one to code. I need to collect some more data and integrate into my system. 


* term came from the same colleague