“It’s not whether you’re right or wrong that’s important…” Really??
When you consider that statistics indicate most investors are wrong more than 50% of the time, being right seems really important.
The entire quote is “It’s not whether you’re right or wrong that’s important, but how much money you make when you are right and how much you lose when you’re wrong.” Soros
For Trend Followers making money is really important. But minimizing losses is critical! The only way to eliminate losses is not to invest at all. Therefore, the focus is on reducing losses as much as possible.
Here is the Trend Follower’s approach and what Trending Stocks helps its subscribes to do:
A. Only invest in stocks that are performing well, AKA Trending!
B. Immediately after every Buy, place a Trailing Stop Loss Order behind that Buy.
The Trailing Stop Loss accomplishes three goals.
1. It locks in profits as the stock’s price increases.
2. It prevents large losses should the stock or market take a turn. Small losses are part of the game. Large losses take you out of the game!
3. It takes the emotion out of the decision and offers the investor real peace of mind.!
To learn more about this process, visit Trending Stocks and check out the FAQ on Trailing Stops.
Be sure to sign up for the 4-week FREE trial. Learn to take the emotion out of investing!
And always – Ride Your Winners; Cut Your Losses!