Summary
A single chart from trend follower Paul Mulvaney. Trailing stops cut the downside; refusing to take profits at fixed targets keeps the rare, large wins.
He contrasts this with the disposition effect, the common habit of selling winners too soon and holding losers too long.
Source
- Title
- Run Profits, Cut Losses: Long Optionality
- Author
- Paul Mulvaney
- Published by
- One-page chart
- Length
- 1 pages
- File
- PDF · 56 KB