Exit Strategies

If you came to this page to learn more about stop losses, you’re in the right place! Check out these short video interviews from the MoneyShow:

Managing Your Exits

Good Stops Hit First

Gaining an Edge with Backtesting

Active Investors (click to continue here)

  • Longer-term horizon of about one-year
  • Don’t want to be shaken out of a position too easily
  • Don’t want to let profits evaporate in the next downturn

Swing Traders (click to continue here)

  • Shorter term horizon of a couple days
  • Need to capture profits quickly
  • Can’t afford to let a loss grow

3 Replies to “Exit Strategies”

  1. Question for the author of “Cutting your losses with stops”. I haven’t tried to duplicate your result in Wealth lab yet.

    But on the face of it, I can’t see how a fixed stop 9% below your purchase price as your only sell trigger would ever lead to a profit. All triggered sales would be at a 9% loss, alternatively you would hold the position indefinitely. What am I missing?

  2. jackie,
    in you “backtesting the s&p 500 stocks” over the last 5 years you used the buy & hold strategy as reference. you list 500 trades?
    wouldn’t buy & hold be only one trade?
    thanks,
    peter.

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