Since then, the stock has moved up steadily, with the trailing stop obediently following on behind. Moving up in a parallel fashion like this keeps the open risk at acceptable levels. This is a classic example of a stable trending market.
Even though there may currently be some indecision in the general market, there is no rushing to close a trade like this for fear of losing any profit. The trailing stop will take us out of the position, and future price action will determine when that is.
If you want to know more about how we trade, including what we look for in potential setups, risk management and the psychology required when trend following, all with full ongoing support, then consider signing up to our mentoring programme.
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