Does anybody use trailing stops?
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  1. #1
    Join Date
    Mar 2006
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    6

    Default 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

  2. #2
    Join Date
    Mar 2006
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    3
    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.

  3. #3
    Join Date
    Jan 1970
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    0
    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.

  4. #4
    Join Date
    Oct 2008
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    189
    Quote Originally Posted by DCtrader View Post
    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
    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.

    Happy Trading

  5. #5
    Join Date
    Mar 2009
    Posts
    58
    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

  6. #6
    tymen1 is offline Banned FX-Men Honorary Member
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    Quote Originally Posted by sam111 View Post
    Hello DCtrader
    .............
    .............
    Sam111 you are replying to a ghost!!

    The post made by DCtrader was made in 2006 !!

  7. #7
    Join Date
    Oct 2008
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    189
    Quote Originally Posted by tymen1 View Post
    Sam111 you are replying to a ghost!!

    The post made by DCtrader was made in 2006 !!
    I didn't notice the date,
    I just quoted the Exact question :

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