My implementation of the position trading approach is all about keeping it simple and (above all) applying good money management techniques, on the basis that if you look after the downside then the upside will take care of itself.
In the past few years I’ve written extensively about what I regard as ‘the most important weapon in the armoury of any trader’ – the stop order. I am sometimes asked about whether guaranteed stops are worth the cost of applying them, so I thought I’d take the time to outline what those costs are.