It depends on your trading system, and its average maximum adverse excursion. If most of your winning trades revisit your entry point first, then a slow moving average is necessary. On the other hand if most or your losing trades never reach even half the distance to your target price then you need a fast moving average.
Not a robot, greed and fear kick in, get tired, get an opinion, trade stupid and sooner or later rules get forgotten and account gets slapped. Hence slower, 50% focus, not 100%, fridays results where impressive, catching more of the trend moves, half the trades made and double the profit, seemed fun and wasn't stressed, so not getting burnt out. Been trying to go slower more hands off for a while, finally cracked it, Gold and multiple small positions is key.
let say your bought a stonk called expi at 17.86 back in 7/20/20. as of today 8/23/20, where would you put your stop loss at?
Wow, good call, EXPI is trending nicely on the daily chart! Your stop loss, you mean your exit stop on this winning position? If you mean exit stop you need to use a dynamic stop and milk this superb trend until the fat lady sings, this sucker can keep going up for a long, long time... (Just my opinion, trade at your own risk folks.)
You mean a trailing stop? I’m asking for a number. You don’t need to explain dynamic and what not to me. Give a number. Where would you put the stop loss as as of today 8/23/20?
That last down day, so SL $31 area, it's a big loss from here, but trend is strong, any earning any time soon or planned news ?? if so Sell out right before, too high odds on reversing hard. 21 Ema would be my classic SL, follow it if you want loose and longer term, 9SMA if you think it's near the top, or find a number that suites your risk tolerance.
ATR makes sense but could be refined depending on the market regime. Also, you probably have an experience on how adverse moves play out based on the specific chart setup in play. There are apps that provide these stats. Like everything with the market, nothing shows statistical stability. There are guys playing on a higher level with more money and they keep cancelling each other out. Or, maybe its all of us doing what is obvious.
that's what i was thinking also...to put the sl around the $31 mark. but i don't want to lose all that profit for it to come back down to $31 and hit my sl. and if i put my sl any higher than $31...i may be also be shaken out. decision decision...
Or you could take your profit, likely won't keep going up for ever ?? odds are against. Trading, is just guesstimating with style 99% of the time.