trailing stops Vs manual stops in short term swings

Discussion in 'Strategy Building' started by eitanhir, May 14, 2005.

  1. eitanhir


    hi all,
    i'm trying to do short term (few days) swing trades on stocks.
    from your experience, what is the best exit strategy for these kind of trades?
    there's always the dilemma between giving your position enough room to develop and not leaving to much profit on the table. what do you think is best, using a trailing stop or moving the stop manually at the end of each day?
    just to set as example, the attached file shows GGC chart. i open a short position last monday at 36.79 and used a trailing stop of 2%. it cut me out on wednesday at 35.42 - nice small profit. surely you can see what would happen if i used a wider stop.
    what you guys think?
  2. stocon