- Wealth PMS
It’s time for some exits, because our stop losses have been hit. Of course, both the stops we did execute aren’t losses in the sense that we lost money in the trade, but it’s a trailing stop. Let us explain.
A trailing stop is like this: A stock keeps going up. From it’s highest point, it should not retrace more than 10%. So the stop loss is 10% that “hangs” off the highest point after you have bought.
For clarity, we’ll use the closing prices, not intraday highs. This is to reduce . . .