- You have the wrong expectations about riding a trend
- You’re using the wrong trailing stop loss technique
- Your trailing stop loss is too tight
You know the type of trend that keeps going higher and your profit keeps snowballing — while you do nothing.
This post was originally posted here. The writer, Rayner Teo is a veteran community member and blogger on InvestingNote, with a username known as @Rayner and has close to 800 followers.
Well, the secret is this…
They use a trailing stop loss.
You’re thinking:
“It doesn’t work.”
“I’ve used it before but the market always hit my stop loss before it trends.”
That’s because: