“‘I can’t get out here, I’m losing too much’, is the worst thing you will hear an investor say.” Jim Paul and Brendan Moynihan, What I Learned Losing A Million Dollars, 2013
Professional Investors Always Have an EXIT Strategy. What’s Yours? Do You Have One?
Professional Investors don’t Ride a Stock Down. They Get Out. They get out because they’re not emotionally involved with their investments. They’re Calculating. They watch their Money closely. They have an Exit strategy.
Most DIY investors don’t have the time to watch their investments constantly like the pros. They frequently get emotionally involved. Plus, they don’t have an EXIT strategy.
If you don’t have an EXIT strategy you should take a serious look at Trend Following.
The average Trend Following DYI Investor is not a professional with time to watch their investments closely.
Instead they depend on the Trailing Stop Loss transaction to lock in profits as the stock’s price goes up. And It allows them to automatically exit gracefully if and when the stock’s performance turns against them or fades.
You probably know where the Exit Row is when you are traveling on an airplane. A Trend Following Strategy might be just the Strategy you’ve been looking for when investing. It could make all the difference.
And remember Ride Your Winners; Cut Your Losses.
