How close should i keep a trailing stop for intraday trading?? Also
Would it depend on the time frame or not??
The reason for this question, is i’d like to use just a trailing stop rather than a normal stop. Would this also create more risk to my trading %.
Thx
Happy Pippin
Trailing stops are great for locking in profits but at the same time you risk missing out on bigger moves because markets tend to retrace before continuing on their trend.
I like to use dynamic trailing stops. What I mean is that I don’t just like to move my stop by “x” amount of pips if the price moves in my favor by “x” amount of pips. Instead, I like to see what support/resistance is held or broken during my trade and adjust my stops accordingly. For example, if I am long and I see that a pair has broken through a critical level, that level now becomes support. I would then move my stop a few pips below that level. Remember, you want to catch as much profit on each trade so placing your stops behind these levels gives you a good chance of catching big moves without cutting into too much of your profits.
Hope that helps!
Awesome, Thx Big Pippin
Would anyone know any good sites with reliable Supports and Resistances. Saves time rather than trying to find all the majors, unfortantly i’m not a full time trader yet, but with alittle more knowledge, soon enough. Thx:)
You need to be able to figure that out yourself based on the way you trade. There are plenty of folks who will provide you with those levels, but how can you know they fit your specific needs at any given point?
As a side note, if you don’t have enough time to do a quick look at “all the majors”, which is only about a half dozen pairs, to find good support and resistance, then you need to reconsider your trading timeframe. Even better, you might do well to focus on just one pair.