Does anybody use trailing stops?

I’ve been doing alot of reading and forum surfing of using trailing stops. My experience is that it’s been good for me to lock in those small profits, but I usually miss out on the large moves. Does anybody use trailing stops, and how far from the current price should I set them?

-DCtrader

I don’t really like trailing stops because I feel like it doesn’t give your trade enough breathing room.

I prefer set targets. If you do want to trail your stop, I would put at least 30 pips away from the price so you can weather any retracements that might follow.

If you are day-trading I would just suggest you use set targets.

The use of trailing stops depends on your trading style and timeframe. If you haven’t yet decided whether to use trailing stops or not then your trading system is incomplete.

If you swing or position trade which are longer-term type trades, I think it’s imperative you trail your stops so you don’t turn your winners into losers.

If you trade intraday, then setting profit targets might be more effective than trailing your stop since theres a higher chance of being whipsawed and getting stopped out prematurely.

There many ways to exit the trade. You should try and study as much as you can and test as much you can.

I think the best answer to whether should use trailing stops is it depends on your system.

Hello DCtrader
To use a trailing stop-loss, set a number of points or percentage under your current share price. This will be your least - the automatic trigger to sell if the price is breached. However, should the share cost rise, your stop-loss is moved upwards in the similar ratio as the share cost. Thus, your trigger will still be (suppose) 15 percent below the present price, but that will be higher than it one time was. The further up a price goes, the farther the trigger is reset. This has the consequence of locking in a greater part of your profits. Should the price go to turn around, you sell at your latest higher level, however if the price keeps rising and rising, you get to revenue from that gain.
:slight_smile:
Happy Trading

the stop loss situation is one of those “damned if you do – damned if you dont” routines.

TRAILING stops are usually reserved for protecting PROFITS once they have been achieved because, by the nature of their use, they are too tight for the initial sl as you enter a trade.

many people use a trailing stop as an exit strategy and while i personally do not like it, it works for those who wish it that way, and thats pretty much the bottom line.

as you observed, trailing stops, because of their inherent “tightness”, tend to be hit easier and sooner than one that was set at a previous high or low on the chart.

for the NEWBIE, it is probably the SAFEST form of trading, although you will never achieve the full run of a price move, but for the more experienced trader, the stop loss issue is a hotly debated situation.

right now, use your stops, perhaps lengthening them a touch to give you more breathing room, but when starting out, protect profits at all costs — later on you can concentrate on getting the most out of each move.

che

[B]Sam111 [/B]you are replying to a ghost!! :smiley:

The post made by DCtrader was made in 2006 !! :smiley: :smiley:

I didn’t notice the date,
I just quoted the Exact question :D: