Although Friday's action was bullish, and we now have solid unrealized gains in the open ETF and stock swing trade positions in our model portfolio, we continue to
trail tight stops in order to reduce risk and lock in gains whenever possible.
After the price of $ BITA spiked above the $ 20 level, we made a judgment call to
trail a tight stop below the prior day's low in order to lock in gains in the event of a sharp pullback.
Not exact matches
This allowed us to hold the full position until October 25, at which time the additional shares hit our
tight trailing stop (beneath the prior day's low at $ 53.30).
Rather than attempting to guess when a powerful rally will end, we often close winning trades by
trailing protective
stops tighter and
tighter, until a pullback eventually causes us to lock in the profits.
The
tight trailing stop we set allowed us to still participate in further upside gains if $ LNKD continued moving higher, but also protected nearly all our profit in case the stock took a breather and its price reversed.
10 %
Trailing Stop — I consider this a fairly tight traili
Trailing Stop — I consider this a fairly tight trailing s
Stop — I consider this a fairly
tight trailingtrailing stopstop.
By further refining your
stop loss placement (ideally making it a little
tighter or using
trailing stop losses), I think the results could improve.