You've spotted an unstoppable, trillion-dollar trend. You've identified the stock that's set to benefit most and made a trade using the tactics that will squeeze the most profit out of it.
Now it's time for the final piece of the Total Wealth strategy.
Mention the words "risk management" and most investors get a look that's somewhere between "bored" and "terrified." It's not that they don't want to control risk; they're just not sure how and they don't make it a priority.
Yet the most direct path to building a fortune is not losing your money in the first place.
All you really need is a handful of tools - which I'm going to walk you through one by one in the coming weeks - and the discipline to enforce them.
One you're probably already familiar with is a trailing stop. They're usually automatic sell orders set at a specific percent below the market price of the investment you hold or at some predetermined dollar amount of risk on a given investment. While people typically think of trailing stops as downside protection, in fact, they can be used to lock in profits, too. That's why I recommend using them on almost every investment.But few people use what I call "Ultimate Trailing Stops."