Trailing Stops Should you do it YES or NO??
Trailing Stops should you do it Yes or No?
My answer is yes and no, because everything you do in trading should be tested!! Before you trade a dime. You should have a good idea how your trading plan and strategy is going to perform and what the humps in the road look like so you don't bail on your plan when its going through a rough patch.
Now I TRAIL my stops, because I love to minimize risk to my capital. But also I trade a large time frame (Daily) so trades can take a long time to complete and it would kill me to wait a week or two to be so close to lose all my profits and end up with a lose.
So I've trailed and tested trailing my stops and it fits with my strategy and the benefits are that it helps me mentally knowing I can't lose when my stop lose is in profit and helps me see trades through to the end instead of get scared and taking profits early.
Trailing stops can also hinder you trades if you get a spike in the market stopping you out and then the market continues without you. You've got to be prepared for when that happens and take it on the chin.
Trailing stops is good when done correctly according to your plan and testing.
Test test and test till your happy is the message in this post! Know how your strategy works and stick to the plan!!
Feel free to comment if you think trailing stops is good or bad for trades!!
My answer is yes and no, because everything you do in trading should be tested!! Before you trade a dime. You should have a good idea how your trading plan and strategy is going to perform and what the humps in the road look like so you don't bail on your plan when its going through a rough patch.
Now I TRAIL my stops, because I love to minimize risk to my capital. But also I trade a large time frame (Daily) so trades can take a long time to complete and it would kill me to wait a week or two to be so close to lose all my profits and end up with a lose.
So I've trailed and tested trailing my stops and it fits with my strategy and the benefits are that it helps me mentally knowing I can't lose when my stop lose is in profit and helps me see trades through to the end instead of get scared and taking profits early.
Trailing stops can also hinder you trades if you get a spike in the market stopping you out and then the market continues without you. You've got to be prepared for when that happens and take it on the chin.
Trailing stops is good when done correctly according to your plan and testing.
Test test and test till your happy is the message in this post! Know how your strategy works and stick to the plan!!
Feel free to comment if you think trailing stops is good or bad for trades!!
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