"The best stress reliever is a smart stop loss order!"
So far you've learned the principles of Demand Fundamentals, the use of the price-to-earnings (PE) ratio to avoid buying expensive stocks, and the basis of technical analysis for picking the right time to open a new trade. In Rule 4, you will learn the right time to exit a position. This rule could be called the "Intelligent Stop Loss®" rule.
I believe this is the single most important concept of my approach to the market. There should be a huge star beside Rule 4! I have been "saved" from many whipsaw sessions in the market by using this strategy.
The objective of this rule is to hold onto a stock as long as it is making you money. "Making you money" is the important phrase here. It means you want to hold onto a stock as long as the stock's market price is trending or moving in the direction that provides an increasing level of unrealized gain.
Unrealized gain is the profit you ...