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Trailing stops

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Trailing stops

Good afternoon James, Thanks again for the excellent new web site. I know this may seem like perennial 20/20 hindsight, however, I have been wondering why MM hasn't employed a type of trailing stop when a stop rises significantly but hasn't reached the chosen target price. Two such stocks currently in the MM Platinum Portfolio are: NWH $2.13 at time of writing but $3.12 on 13/1/21 ZIP (of course!) $8.47 at time of writing but $13.92 on 16/2/21. They may well rise again and beyond those prices but a trailing type stop could have locked in some profits on the falls with a buy back later or even soon after on a turn around. Thanks again for your great service and insights. David.

Answer

Hi David,

Undoubtedly in these 2 examples I wish we had used trailing stops but hindsight is a great investor. If we simply consider Apple (AAPLM US) which is showing us a great “paper profit” in our International Portfolio its endured 2 major corrections in the last 18-months that would have stopped out such trailing stops before it kicked aggressively higher.

We believe all stocks need to be judged on their individual merits although we do acknowledge MM should have been more active on occasion with the sell button in 2021.

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Apple Inc (AAPL US)
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