Trading strategy - Why I use a "set it and forget it" approach with stop losses

[morpheustrading]

Trading strategy - Why I use a "set it and forget it" approach with stop losses

When the market pulls back from its highs, as it has done over the past few days, it is often challenging for newer investors and traders to stick to their trading plans and hold on to their winning positions. That's why I use a “set it and forget it” approach with regard to protective stop losses on my swing trades. I wrote a short article to explain the strategy:

Why we use a "set it and forget it" approach with stop losses

While there are obviously occasional exceptions and situations where I would suddenly exit a trade, I have found this "set it and forget it" rule ends up making more profit over the long-term. Anyone out there learn this over the years too?

 

[jungerns]

Re: Trading strategy - Why I use a "set it and forget it" approach with stop losses

When the market pulls back from its highs, as it has done over the past few days, it is often challenging for newer investors and traders to stick to their trading plans and hold on to their winning positions. That's why I use a “set it and forget it” approach with regard to protective stop losses on my swing trades. I wrote a short article to explain the strategy:

Why we use a "set it and forget it" approach with stop losses

While there are obviously occasional exceptions and situations where I would suddenly exit a trade, I have found this "set it and forget it" rule ends up making more profit over the long-term. Anyone out there learn this over the years too?

Without question its highly suitable for many. In my opinion yes "Set and forget" does produce more profit.

Doesn't mean though you should ignore other potential short term trades.

 

[morpheustrading]

Re: Trading strategy - Why I use a "set it and forget it" approach with stop losses

Right, I have found the "set it and forget it" works best with a short to intermediate-term swing trading horizon (at least several weeks hold time). I sometimes take shorter-term momentum trades, in which case I would usually sell into strength, rather than waiting for a trailing stop to get hit.

Without question its highly suitable for many. In my opinion yes "Set and forget" does produce more profit.

Doesn't mean though you should ignore other potential short term trades.