Trailing stops are a more advanced type of stop loss orders that can reduce the risk on your trade as the trade progresses. It does this by adjusting itself to a more favorable rate as a trade moves in a trader’s favor. The basic function of the trailing stop is to increase your profit lock as the market moves without the need for you to intervene and adjust. This allows you to follow trends with a safety you are comfortable with and you don’t have to monitor constantly.
Trailing stops are quite good for swing trades and long term trades. If market moves direction against your trade then trailing stop makes sure that you book at-least what you made so far.
Using a trailing stop is just like asking the market to stop you out x pips from the peak.
I’m not a fan…
Better to just take profit than trail your stop up constantly. In the end the x pips you miss my trialing will hurt you.