Ep. 742: Trend Following Fifth Edition with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
00:00
How to Get Out of a Winner
Tom Basso: When do you get out of a winner? You have to be comfortable with letting a trend run as far as it can, crest and then begin to decline before considering an exit. If you are long several positions and there are huge open profits on the table and the trend is still up, that is not the time to get outof a winner. Trend following needs those home runs to pay for its whipsaw losses. The idea of a profit target sounds wise at first blush. However, if you are riding a trend, you have to let it go as far as It can go. Tom Basso slams profit objectives.
Play episode from 38:35
Transcript
