| Author: |
djenyns |
| Description: |
http://www.trading-secrets-revealed.com
So how do you know when to implement your trade exit plan? By using a trailing stop.
In short, trailing stops are typically set in a very similar method to your initial stops, that is, based on technicals, indicators and/or percentages.The only real difference is the price at which you calculate.
Your initial stop is calculated from your entry price whereas your trailing stop is calculated from the highest price since entry. In this way, this stop trails price as price moves up, so too does your stop.
Trailing stops will allow you to ride the trend for longer, while locking in profits should the trend reach its end.The trick is to find the balance between giving your trade enough room to move, while also having the stop tight enough to not give back too much profit.
Gain more knowledge on using trailing stops at: http://www.trading-secrets-revealed.com |
| Views: |
2,783 |
| Rating: |
|
