TRAILING STOPS

In all forms of long-term investing and short-term trading, deciding the appropriate time to exit a position is just as (if not more) important as determining the best time to enter into your position. Buying (or selling, in the case of a short position) is a relatively less emotional action than selling (or buying, in the case of a short position). When it comes time to exit the position your profits are staring you directly in the face, but perhaps you are tempted to ride the tide a little longer, or in the unthinkable case of paper losses, your heart tells you to hold tight, to wait until your losses reverse.


At such emotional responses are hardly the best means by which to make your selling (or buying) decisions. They are unscientific and undisciplined. Many overarching systems of trading have their own techniques for determining the best time to exit a trade. But there some general techniques that will help you identify the optimal moment of exit, which ensures acceptable profits while guarding against unacceptable losses. Read More Here!