How Smart Investors Lock In Gains Without Missing Future Profits

Pablo Quiroga

How Smart Investors Lock In Gains Without Missing Future Profits

Are you looking for a way to protect your investment profits without selling too early?
Would you like a system that secures gains automatically—even while your assets keep growing?

In this post, I’ll show you one of the key tools I use in my real portfolio: positive trailing stop-losses.

It’s a strategy that helps me grow capital, manage risk, and sleep well at night—without relying on guesswork or emotional decisions.

What Is a Trailing Stop-Loss?

A trailing stop-loss is a dynamic and automated risk management tool that helps investors protect their profits without limiting future gains.

Unlike a traditional stop-loss—which is set at a fixed price below the purchase price and stays there—a trailing stop is flexible.

It moves upward as the price of your asset rises, maintaining a set distance (typically a percentage or fixed amount) below the highest price reached.

This means that as your investment becomes more profitable, your stop-loss follows it upward.

But if the price reverses and drops by the defined amount, the trailing stop triggers a sell order, locking in the gains you already made.

How It Works – Step by Step

Let’s break it down with a simple example:

You buy a stock at $10.
You set a 5% trailing stop-loss.
The stock rises to $12. The trailing stop moves up and now sits at $11.40 (5% below $12).
If the price keeps rising to $13, the trailing stop moves up again to $12.35.
If the price then drops to $12.35, the stop-loss triggers, and the position is sold automatically.
You exit the trade with a $2.35 profit per share, without having to constantly monitor the market.

Key Benefits of Using Trailing Stops

Lock in profits as they develop, without needing to time the market.
Let your winners run while still protecting gains.
Minimize emotional decision-making, especially in volatile markets.
Avoid big losses if a stock quickly reverses after a strong run.
It’s a simple tool that brings discipline and automation to your investing strategy.

Trailing stops can be especially powerful when combined with a long-term investing approach that seeks both capital growth and passive income, like I do in my portfolio.

Why I Use Trailing Stops

I don’t try to guess the top—the system handles it.
I secure profits without needing to watch the screen all day.
I minimize emotional decision-making.
And I protect both my capital and peace of mind.

Trailing stops are a core part of my low-risk, high-discipline investing strategy, designed for sustainable long-term wealth.

Want to See This Strategy in Action?

I apply this method in my real, public portfolio on eToro, where I combine:

💰 Monthly dividend income
📈 High-potential growth stocks
🛡️ Low-risk systems like trailing stops

➡️ You can follow or copy my strategy directly here:
🔗 Copy My eToro Portfolio