Like homebuilding and construction stocks, steel stocks have lately enjoyed strength -- and a good run since I wrote about them on Oct. 10. As with the housing-related names, it now looks like a pretty good time to take some profits.
Investors usually find it easy to pull the trigger and buy a stock, mutual fund or an index, but knowing when to sell is often a lot tougher. Many times, investors buy good stocks at the right time and ride the price higher to solid profits. Then they watch that superstar gainer plunge into a deep correction, give back all their profits and possibly take a loss.
That's why I consistently advocate keeping protective sell stops under key support levels. When a stock moves up dramatically, it's often a good idea to follow at least a portion of your position with a trailing stop. That ensures you'll automatically lock in some of your gain if the position turns against you.
Technical Analysis Not Scared? That's Scary 2/9/2007 7:44 AM EST The unemotional response to recent selling is worrisome.
At time of publication, Manning had no positions in any of the stocks mentioned in this column, although holdings can change at any time. Mark Manning, AAMS, is an Accredited Asset Management Specialist and Registered Investment Advisor with Butler, Wick & Co., where he specializes in wealth management. Under no circumstances
does the information in this column represent a recommendation to buy or sell stocks. Manning appreciates your feedback; click here to send him an email.
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