positon building vs profit booking

dear friends..
i have some doubts about when 2 add more positon and when 2 book profit..
can anyone clear it with an example..

What I do is,
I add more when stock breaks in upper trendline and make an exit when it breaks its lower trendline.
Example One I already gave- Reliance a perfect down trend.
Mcdowell and ITC are example for bulls,also keep an eye on Global tele which has broken its upper trendline which was at 111.80(I use bse quotes btw).T can be anywhere fm 144 to 167,I shall exit half at 124 for safety to bring my purchase cost down.
When to add positions and when to exit is a million dollar question.

It depends on the nature of trade one wants to enter... a positional trader would add several positions as the first trade runs into profit. The trick is that the 'ADDS' should not increase the overall risk of the trade.

For booking profits, I use the price channels and reversal to mean theories.


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