"Yes, he used a trailing stop, but he never sold a stock because it was "too high". "...he did ,but I doubt he thought of it exactly like that...when you place a trailing stop and you are into profit what you're doing is saying I won't risk giving up more than this amount of open profit .By implication what you are doing perhaps subconsciously is you are saying to balance risk I am capping the downside here which by implication is defining some expectation on the upside you think is still probable. If you really thought the upside was actually never going to be "too high" to sell then you would never need a trailing stop..hope that is understandable as in reading it it does not immediately look the clearest explanation i ever attempted.
