erom43

I think letting profits run is a clear choice, with following the trend a distant second....for me. Cutting losses and risk management are essentially the same thing for me, and should be a part of any traders philosophy, regardless of trading style. I mention following the trend because there are many countertrend trading plans our there, that would contradict that rule, and make it moot. When to enter a trade, and where to place your stop are integral to almost every trading plan I have ever seen, and clearly receive the most attention by both gurus and students. When to take your profits, on the other hand, is a much more controversial, and more difficult skill to master. If you are an investor, letting profits run with some sort of trailing stop would seem appropriate. If you are a short term trader however, having a definitive profit target is often a better move.