Subscribe now and watch my free trend following VIDEO.

Risk Management, Stops, Exits, Losers and Winners

Feedback in:

Hello Michael, thanks for accepting my friend inquiry. First, I want to say that I am a big fan of your podcast and interviews. Really great stuff. About myself? I have traded for 5 years, but have not traded profitably. I think my largest hurdle is not holding onto the winners. I do not give my entries enough room. Therefore I keep my losers very short, but very often see the position run after stopped out. In a nutshell my strategy is to move the stop to the entry point as soon as the position has a little bit of room. But so many times the position turns around just to touch my stop and then move on. Do you have any advice for me? Would you say that’s just risk management and part of the business? Because I think I miss too many good trades with this strategy. Thanks a lot in advance and have a nice time in Asia.


My first advice would be to read one of my books. Not a dodge to your question, but my books are filled with the necessary detail not easily put in one email response.

Efficient Market Bullshit

I love it when people tell me the trend following ‘winners’ are the lucky survivors. In my humble opinion people who think like that are either ignorant in the short-term willing to learn/be corrected or, and I say this bluntly, losers in life unable to accept reality. If trend following winners are the lucky monkeys hitting the keyboards, than the king of the monkeys must be Warren Buffett. Buffett himself makes the case for why this is bullshit (there is no other word) in an excerpt from Snowball:

Part 1
Part 2
Part 3
Part 4
Part 5
Part 6

Book excerpt idea courtesy of BreakoutStocks.

Learn to be a trend following trader.
Sign up free today.