Would you initiate a trailing stop loss as the share price moves up?

Our stop prices are set at very specific levels—often just a few cents below a strong support level or trendline. What that does is it often allows us to stay in a trade that might otherwise have knocked us out. With a trailing stop you end up with completely random pricing of your stops, so you are doomed to be knocked out of the trade even when the stock/etf is just experiencing a normal pullback before rocketing off to new highs. That said, we often do move our stops up at some point during a winning trade. Even this number won’t be completely random, but it will be designed for us to lock in some amount of profit. The target prices are set in the same manner—at levels just below where we feel there should be significant resistance. Be aware that we are constantly monitoring these trades and if either level appears that it should be moved at any time, we will issue a Trade Update via e-mail and update the Portfolio page of the site.

Still need help? Contact Us Contact Us