A Trailing Stop Discipline

One of the best ways in which to discipline yourself as an investor is by using trailing stops. This will remove any doubt as to when to sell a given stock.

You set a trailing stop at the time that you purchase the stock, and you monitor the performance of that stock periodically, and if the stock price falls back - either from its newest high or from your entry price - to the trailing stop percentage that you set initially, then there is no emotion involved. You simply sell the stock in question and you never look back.

This is a simple tool to cut your losses and let your profits run, and you will never see great results come to you as an investor by any other method!


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