Risk and trade management
Trailing stop
A stop that you move in the direction of the trade as price advances, for example below each new higher low.
Why it works
It locks in profit while letting winners run, so a trend can pay much more than a fixed target.
How to use it
Only trail behind clear swing points, not every candle. Trailing too tight gives the profit back to normal noise.
The typical mistake
Trailing the stop so close that a normal pullback closes a trade that would have kept going.
FAQ
What is Trailing stop in trading?
A stop that you move in the direction of the trade as price advances, for example below each new higher low.
How do you trade Trailing stop?
Only trail behind clear swing points, not every candle. Trailing too tight gives the profit back to normal noise.