Do you sell when charts say to?

[WileyJames]

Just finished book a few weeks ago, but I'm a little confused. Is Phil saying to sell stocks when MACD, Stochastic, and SMA chart flip or when the Big 5 no longer qualify the stock as wonderful?

[KatonahMike]

Certainly he suggests selling when the company changes such that it's no longer wonderful.

With respect to the tools, he's decisive about using them to choose an entry point once you identify a wonderful company.

In a generally up-trending market, I would be more inclined to set a loose stop-limit once gains have been locked-in, rather than using the tools to buy and sell- esp. if trading in a taxable account. I would expect healthier gains from this approach.

In a sideways, down-trending, or volatile market, you can probably use the tools to help identify short-term buy opportunities and subsequent exit points. If you're within the MOS, and confident about the fundamentals, that should help to alleviate any day-to-day concerns, since, theoretically, it's a good long-term hold.

Mike

[WileyJames]

thanks!