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  1. #1
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    Trailing stop loss and its use

    Introduction A trailing stop loss is a stop loss that automatically moves and adjust itself to maintain our profits and also manage our losses. For instance if you make a buy trade in eurusd at 1.1200 and set a trailing stop at 50 pips. Suppose the price of eurusd moves from 1.1200 to 1.1300 then the trailing stop automatically moves from 1.1150 to 1.1250. In this case it should be noted that the trailing stop loss will not change if the price falls.

    Use of trailing stop loss A trailing stop loss can be best used when te trader wants to lock his profits as the price moves in his favor. It is mostly used by position traders and swing traders trying to trap breakouts and volatile movements in prices.

    How to set trailing stop loss Placing a trailing stop for any order is easy. Just right click on the order row on the trading tab of the mt4 terminal. Then you can select the number of pips you want to set the trailing stop for from the dropdown list

    Please note trailing stop works only till the terminal is run. Once the terminal is closed it gets fixed at its last price before closing the terminal.

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  2. #1491
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    Stop loss have been one of the most promising way to handle risk. Trail stop is done by protecting some profits when the market moves on higher number of pips in forex. I have seen traders use trail stop to manage loss and secure some pips but I don't personally use this because the market have possibilities to retrace a bit and still start off its trending position. So depending on the number of pips you are risking for trail stops, it might not be very ideal. Nevertheless it's still good instead of loosing up your capital.

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  3. #1492
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    Quote Originally Posted by Sixteen View Post
    Stop loss have been one of the most promising way to handle risk. Trail stop is done by protecting some profits when the market moves on higher number of pips in forex. I have seen traders use trail stop to manage loss and secure some pips but I don't personally use this because the market have possibilities to retrace a bit and still start off its trending position. So depending on the number of pips you are risking for trail stops, it might not be very ideal. Nevertheless it's still good instead of loosing up your capital.
    It is just part of the way of handling risks, because the best way of handling risks should be when the trader has been able to have made use of the good strategy and then good risk management in trading. Once the trader has the ability to using the good strategy and make stronger analysis, then stoploss risk controlling will be effective.

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