Do you use Trailing stops, hard stops or both?

Discussion in 'Trading' started by KCalhoun, May 29, 2020.

  1. KCalhoun,

    I start the trade with a hard stop.

    Depending on market conditions I will:

    1. Exit at Profit Target
    2. Use trail stop method to adjust the stop every X amount of tick
    3. Use trail stop method to adjust the stop based on market structure.

    Sometimes the price takes off fast after I enter, and I have to use step 2. Sometimes price dancing around back and forward and I have to use 3. Sometimes its in a range I have to use 1.

    Still doing testing to see what kinda fits me. Hard to choose, so I be discretionary.
     
    #11     May 29, 2020
    KCalhoun likes this.
  2. Trader Curt

    Trader Curt

    I don't know, I flip a coin and if it's heads then I'll use a hard stop and if it lands on tails I'll use a trailing stop.
     
    #12     May 29, 2020
    jbt likes this.
  3. volpri

    volpri

    I use hard stops rarely trail them but if I do it is manually. Since I scalp I am usually out pretty quick. If I go for an intraday swing of 2 or more legs in say a MM I may trail it closer as each new leg starts but that trailing is always done manually.
     
    #13     May 29, 2020
    KCalhoun likes this.
  4. deaddog

    deaddog

    I used to have hard stops in the market bur got slapped pretty hard with the flash crash a while back. since then I have alerts that let me know if a stock is nearing a stop target. As a swing trader I usually wait until the next morning to act on a stop and may continue to hold or place a hard stop depending on price action.

    When day trading I have hard stops.
     
    #14     May 30, 2020
    KCalhoun likes this.
  5. oshjdf

    oshjdf

    Both. For trailing, I only use to BE level. Not to let profit run. I am still researching the appropriate condition to use trailing stop to let profit run.
     
    #15     May 30, 2020
    KCalhoun likes this.
  6. SunTrader

    SunTrader

    Initial loss hard stop beyond prior swing pivot(s), then once in profit trailing based on each current individual trading scenario. No one size fits all. Also I almost never use a profit target.

    Where I cut my loss is in my control, exceptions being news related (tweet, tweet) gaps, but where I exit with a profit the market/price action determines. No exceptions!
     
    #16     May 30, 2020
    KCalhoun likes this.
  7. KCalhoun

    KCalhoun

    Good posts, thanks.... useful insights!

    Big picture on a related note I've been struggling with choppy markets lately, anyone else?

    My best recent swingtrade is PENN, but regardless of stop type I've been losing more than winning the last few weeks. Frustrating af.... I'm overtrading, not waiting for strong enough setups.
     
    #17     May 30, 2020
  8. Turveyd

    Turveyd

    Been trading at wrong times and getting chopped to, why I keep SL so tight 4 losses made up for with a big run, it's just hard to stay on plan after 4 losses and not get gambly.

    Take a few days off, just watch, get back in tune with the crazy conditions.
     
    #18     May 30, 2020
    KCalhoun likes this.
  9. Girija

    Girija

    Ken
    You have far more experience than me but my trade picks are in your list too except you trade lot more securities. Try removing all inverses from your pick. I suspect that may be offsetting your gains. The current market is unforgiving on inverses. Tqqq swings 6 points these days.
    Another idea is not to have stops to exit soon or even hanging on to the bag but add more hoping market will come back in the event it retraced.
    Volatility has disengaged from covid news and china trade war news. Need new catalyst for retrace.
     
    #19     May 30, 2020
    KCalhoun likes this.
  10. KCalhoun

    KCalhoun

    Right, good idea to take it easy, will trade exclusively gap runners and 2dh breakouts on small size.

    It's a LOT like playing poker, cash hold'em getting rags for hours waiting for something playable imho
     
    #20     May 30, 2020