Once we have positions and are adding to them, we need to prune some and let others grow. I’ll show you precisely how I manage my trades day to day, including:

• Determining when to exit losing trades
• Deciding when to take profits
• Adjusting stops to let the winners run

All of us know to “cut our losses short and let our profits run”, but it’s not easy to do. When I first started trading the method, I made the classic mistake of saying “I know it will come back.” Because of this lesson, I learned how to set arational exit point that I can stick to. Just a few rules are all you need, and as you do it, your confidence will build.

The objective is to steadily add to positions until you have hit an allocation you are comfortable with. It’s a lot like managing a garden – plant the seeds, add some water (time) and watch the Portfolio grow, while pulling out the weeds the moment they show up!

It’s natural to fear the day when the market suddenly turns against us – especially if you’re fully allocated like I am.

That’s why it’s important to hedge. There are always some stocks going up and some going down. Not only can you detect which stocks are strong or weak, but how many are on each side. This provides the perfect “barometer” to tell you how many positions should be Long, and how many should be Short.

In the course, I will give you a simple tool that will tell you when the market is likely to turn down. When this is evident, you can use Relative Strength IN REVERSE to find those stocks that are falling out of favor, like SAND below. Then, just do the same process as before, but slowly add to Short Positions instead of Longs.

On January 15, GME is strong and SAND is weak.Candidates like these can be found every day, no matter what the market is doing.
And, we can protect againstMarket Risk by trading candidates on both sides.