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Cutting small losses vs riding the trend

QuestionsCategory: QuestionsCutting small losses vs riding the trend
Diane asked 4 years ago
Pat, Help! I'm working to do a better job of cutting losses before the 7-8% (or worse!) range but I find that when I cut, at breakeven or 1-2% down, the stock may still be above the 8ema. But because the initial buy was a bit above the 8ema, if I let it fall below that line, my loss may get to 4% or so. The problem is the stock turns around and continues in an uptrend and I'm sitting on the sidelines....again. I have not been making the returns like I should in such a good market. How do I balance cutting loses small when there's a reaction in the market vs holding on for an uptrend? I can't sit in front of my trading screens all day so I need rules to live by that take the emotion out of it (when I have brief moments to 'tune in') and allow me to set automatic triggers.  Thank you in advance for your guidance. 
1 Answers
Avatar photoOwen Staff answered 4 years ago

Hi Diane,
Pat made this video for you:
https://youtu.be/4vp2Y84Xlfg