Adrian Reid (YouTube) discusses exit management for trades, arguing that while on-market stop losses can prevent missed exits, they are not sufficient by themselves. A well-designed system should include fail-safe exits (stop losses) to protect capital and additional exit rules to capture profits as positions move favorably. The clip emphasizes daily rule checks and the need for profit-taking exits in addition to stop losses.
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If your stop loss is in the market, then theoretically you'll never miss an exit. Yeah, not every strategy has a stop loss. Not every strategy should have a stop loss. That might be a little bit of. Ooh, really? Adrian just said that. But yeah, like some systems work better without a stop loss, but they do have fail safe exits that will get you out.
So the trick is you should just never miss an exit. Whether that means you've got a stop loss in the market or whether that means you've got. You've. You check your rules to exit signals every day. If you've got a stop loss in the market, that's great. But what about your way up in profit and the stock starts moving against you? You need an exit rule that will get you out with some profit. So we don't just want to wait till our stop loss gets hit because that stock's going to go to the moon. We actually need exit rules that will get us out as well as the stop loss. And a well designed system will have both. It'll have the fail safe exits like the stop loss to get you out and protect your capital. And it will have the exits to get you out with some level of profit. If the trade goes in your favorite.
