To capitalize on trends and maximize their profit per trading, traders use trailing stop losses.
It is impossible to predict when a trend will end.
If the price moves in the opposite direction to what you expect, it will be a loss of profit.
A trailing stop-loss will allow you to ride big moves and flow with the market.
Before I go into the actual methods, let me first discuss the advantages and disadvantages associated with trailing stoploss.
There are many benefits to using a trailing stop-loss
A trailing stop loss has the greatest advantage: it allows you to track your profits and gives you a way to maximize them.
This can have a tremendous psychological impact.
Without a plan, you can have the tendency to feel insecure and like you are missing out on potential profits.
Also, FOMO (fear of missing out) will be a part of your life.
You can be confident that you will know what to expect if you have a plan.
You know that even if one trade doesn’t work out the way you expected, over many trades you will make more than if the trailing stop wasn’t used.
The disadvantages of using a Trailing Stop Loss
You can’t guarantee you’ll make more by using a trailing stop-loss.
You’ll need to test…