Day: 22 February 2015

 

Trailing stops and stop-losses

Trailing stops lock in profits, whilst stop-losses limit losses. Using these effectively requires deeper understanding and experience than is outlined here. [The ‘sue yourself’ principle applies as usual.] A stop-loss (sometimes just called stop) – is when you set a price where your trade is exited automatically. If going long, in this scenario (you buy) – you expect price to climb, and great if it does. But you don’t know whether it will fall seconds,Read More