Trailing Stop
The purpose of the trailing stop is to protect your current profit or prevent any further loss if the trade turn against you.
It will follow the latest candle price. For an example, a daily trader holding a long buy position.
The stop loss price will be one bid below the lowest price of the latest daily candle minus the spread.
If the lowest price of the latest candle is 2954.
The spread is 3.
The stop loss price will be 2954-3-1 bid = 2950
You must have the discipline to adjust the stop loss price daily from the day of your entry.
Trailing stop to reap as much profit as possible.
Have the patience and the discipline to follow the rules of the game.
Taking profit too early may result in unable to cover your pass losses.
The purpose of the trailing stop is to protect your current profit or prevent any further loss if the trade turn against you.
It will follow the latest candle price. For an example, a daily trader holding a long buy position.
The stop loss price will be one bid below the lowest price of the latest daily candle minus the spread.
If the lowest price of the latest candle is 2954.
The spread is 3.
The stop loss price will be 2954-3-1 bid = 2950
You must have the discipline to adjust the stop loss price daily from the day of your entry.
Trailing stop to reap as much profit as possible.
Have the patience and the discipline to follow the rules of the game.
Taking profit too early may result in unable to cover your pass losses.
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