"In reality, there are two kinds of initial exits; tight ones and wide ones. Each one has some distinct advantages. The wide exit keeps you in a trade for a long time and gives it a chance to start working for you. Thus, if you LIKE to be right and you want to stay in the trade a long time, you have more of a CHANCE (not guarantee) with a wide exit. Examples of this include the three times volatility exit mentioned for the RANDOM entry system and a 25% retracement exit, which works fairly well for stocks. If you want to buy and hold stocks as long as you can, simply use a 25% trailing stop as an exit, adjusting it up whenever the stock makes a new high". The question becomes, can you stomach the volatility risk of holding for a long time? Can you stomach a 20% pullback or losing 20% of the open profits? Find solutions to your demons.