“I tend to be late to the trade…”

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Michael,

When I identify a trend and take a long or short position as a result, I typically get stopped out with a loss most of the time when the trend reverses or fails. I set stops at about 10% for new positions. I tend to be late to the trade, so I must be identifying the trend too late. When I do find the stock I purchased or shorted goes in favor of my trade, often I sell/cover too soon and miss out on capturing much larger gains.

Lance S.

This not a wise strategy. You need:

• Exact rules for selecting your tracking portfolio.
• Exact rules for entering your trades at the right time.
• Exact rules for exiting your trades with a loss.
• Exact rules for exiting your trades with a profit.
• Exact rules for how much money to bet on each trade.

Also see my FAQS below.

Filed under Trend Following