What is your definition of parabolic today?

Question

When do you prepare your exit plan from a given equity or position based on parabolicity?

Answer 1

A parabolic move is when a stock is on a sharp move.  (Takes it name from the sides of a parabola.)  

First I do not buy stocks that are already exhibiting a parabolic rise.  I consider them to risky as they are likely to turn sharply just as I get in.

If a stock I already own begins to demonstrate a parabolic rise my action depends on the average volume.  If it has a very high volume, I set a tight trailing stop.  Then when it turns I sell.  With a high volume, I'm willing to take the chance that I will be out with only minor damage.   With low volume, I sell out.

The response is the same for long or short positions.  The difference is the direction.