Stop loss and Trailing stop
I know about Stop loss heard that trailing stop has some connection with it. Need better explanation.
It should be in trading discussion section I think
Stick to your rules
Originally posted by Champ
I know about Stop loss heard that trailing stop has some connection with it. Need better explanation.
It is a type of stop loss. The simplest meaning of trailing stop is to keep the difference fixed between Market Price and Stop Loss if market moves in your favor.
For example You bought eur/usd at 1.4000 .......... StopLoss = 1.3950 Price moves to 1.4010 ......... StopLoss will become = 1.3960 Price moves to 1.4025 ......... StopLoss will become = 1.3975 Price Moves to 1.4015 ......... StopLoss will become = 1.3975
If price moves down, Trailing Stop is not lowered. Trailing Stop only goes up.
Bee There is no term like "sufficient money". So aim for a satisfied life.
Thankyou Bee for explanation. It was quite easy to understand.
I use trailing stop but never knew its name. Now I know that the strategy I used was Trailing stop
Originally posted by SashaI use trailing stop but never knew its name. Now I know that the strategy I used was Trailing stop
are you sure i was thinking that you are very expert in trading and know lot more. this is a forex world and here every one learn something new every day.
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Originally posted by sadscorpion
Originally posted by Sasha
I use trailing stop but never knew its name. Now I know that the strategy I used was Trailing stop
are you sure i was thinking that you are very expert in trading and know lot more. this is a forex world and here every one learn something new every day.
OMG. what made u think that I am an expert trader?
Trailing stop loss is really a nice option to limit losses and securing your profits. But there are strategies where trailing SL is not useful. So it should be used carefully coz it can also limit ur profits. There are always downtrends but the thing is to read if market will go up again or not. If you think it will not go up again in near future then u may try using trailing SL. I dont think that there is any fixed rule of using trailing SL.
The good or ill of a man lies within his own will. – Epictetus
lately I've been trying trailing stop and it works fine for me. Even TP is not reach Trailing stop is there to secure your profits.
I am a hosted slave beta.
stoploss and trailing stop is different tools.stoploss is as it is in the name we will use it to stop our loss when the market moves against us.so we can place it any where we decide and once the price hit there we will be out of the trade.but trailing stop is when we are making profit our stop loss will follow the profit with desired pips.if we use trailing stop with 10 pips then our stop loss will follow our profit 10 pips behind.and as long as it will not be hit it can go as much as profit go.and it will lock our profit against suddent trend changes.
Stop loss and trailing tools are both tools of money management and stop loss is placed to avoid huge losses and risks and keep them limited and trailing stop loss is used to lock the profits that are already there and to continue the same trade in hope to make more profits .