What Is A Trailing Stop Loss And To Implement One?
Provided By Trading Secrets Revealed Trailing Stop Losses (part 1) After defining your trading float, setting your maximum loss, calculating your stop losses, and also calculating your position sizing we now need to discuss how we take profits. This will typically involve adjusting your trailing stop loss. Traditionally what an inexperienced trader will do is once they see a little bit of a profit in their trading account, they want to crystallize that profit straight away. The psychological reason for this is because they dont like to lose, and they falsely believe that those profits are their profits, and they dont want to give them back to the market. The reason this strategy is doomed to failure is the fact that youre not adhering to one of the cardinal rules of trading and that is to adjust your trailing stop loss and let your profits run. The astute listener may have realized that were starting to implement rules that adhere to these cardinal rules of trading. For example, by set
