In what situations should a trailing stop be used?

Beginner Questions
1

This may be pretty simple to all of you but as a newbie I just want to know when it’s best used.

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2

From the forexpedia here:

A trailing stop can be good for traders who may not have enough discipline to lock in gains or cut losses.

It removes some of the emotion from the trading process since it automatically protects your capital.

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3

It’s best used every time a trade reaches a breakeven price. Depending on the amount risked, I would scalp a 30-50% profit, move the S/L up to the breakeven, and let the balance run with a trailing stop…

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4

Well I am also a newbie learning how to use the trailing stop, what do you consider the break even price?

5

In general, trailing stop is not mandatory, but Stop Loss is! So, I hope you are very serious on SL as well!

6

once your target profit was hit ,you trail stop it ,right?

7

A better explanation is on this site under learn Forex button above.

8

Thanks everyone.

Thanks for this @steve369. I’ll try this.

9

Make a habit of using trailing stop because it will save your balance from big losses.