There are a few ways to cut loss or trail the profits as the price heads higher.
1) Using the cutloss lines as shown on the diagram, pink (short term), black line (mid term).
Cut loss is triggered once the price bar turns red and falls below the pink line
(price bar does not touch the pink line, it is away from the pink line)
2) Using what is shown on the chart above, moving the cutloss base on the following strategy
a) Initial buy, cutloss below this entry bar or previous bar pivot level.
b) Once away from inital entry position, move the cut loss to the next level as
shown above.
That's it...
The objective is that if you are wrong on initial purchase, you are cut out immediately
without major injury so that you still can pick up and run again.
Once price is moving away from entry level, look for breakeven point so that if the stock
retreats, you are out breakeven with no harm.
Once the price moves away from breakeven point, start to move the cutloss level higher
along the way up as shown on the chart.
This is my own cutloss strategy, it's work well for me..
Happy Profitable Trading 2020!
