A trailing stop is easy to figure. For example, if a stock’s highest closing price is $10 and you set a 25% trailing stop, you’d exit the stock if it declines below $7.50 (25% of $10 is $2.50, $10 minus $2.50 is $7.50). Using a trailing stop is useful because no matter how smart you are or how well you know the fundamentals behind a resource company... oil prices can fall quickly and unexpectedly. By setting a trailing stop, you’re able to stick with your winner, instead of selling it too early and missing out on gains while protecting from large downside swings. Natural resources are extremely volatile. You can make a lot of money in the sector, but you can also lose a lot – quickly . You need to keep that in mind. If you’re still interested in investing in resources, always remember our guidelines. Our resource strategy is designed to help you build a solid portfolio that is positioned to provide solid growth and returns over the long term.
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