how to place trailing stops

Discussion in 'Technical Analysis' started by drew4784, Feb 24, 2006.

  1. drew4784


    does anyone know how to properly place a trailing stop in a trending market? sometimes i move my stop up too early and i can't catch the move
  2. GGSAE


    Trailing stops are the most difficult part of trading, only experience will tell you where to get out. You'll need to incoporate your timeframe to get a better perspective on your stops.
  3. In a "well-defined" uptrending market, wait for the market to close lower two days in a row, maybe three days. Initiate a long-position on-the-open the next day. Place your sell-stop at yesterday's low. Ideally, the uptrend should hopefully resume and make you rich. Do the opposite in a downtrend. Play around with that and see how it might have worked in other markets.