Channel: TopDogTrading

Category: Howto & Style

Tags: barry burnstop dog trading

Description: Best trailing stop loss strategy example for Forex, stocks and options. Get my Free Rubber Band Trade at: go.topdogtrading.com/free-trading-strategy Watch a previous video, Best Candlestick Pattern here: youtu.be/luwp2G58JR0 Make sure not to miss a single video from Barry! Click here to Subscribe: youtube.com/user/TopDogTrading?sub_confirmation=1  ---- A stop-limit order is an order (buy/sell) to close a position that is only valid when the current market price of an option/share reaches or exceeds a predetermined price (after the stop price is exceeded, stop-limit order has been cancelled). If a trailing stop is set on a buy trade, it will increase with the current market price while maintaining the set distance. You can set a trailing stop order, and the stop price is not set as an absolute amount, but as a percentage or amount below the market price. The fact that a trailing stop moves when the price moves in your favor and stays fixed when the price reverses virtually eliminates the risk of a winning trade turning into a loss. Stop loss orders differ from other types of stop loss orders in that the price of the stop loss is self-adjusting so it follows the movement of the stock price, allowing traders to maximize their profits while limiting downside risk. A trailing stop order, also known as a trailing stop, is a type of trading order that protects the trader from a change in the direction of the stock price and also keeps the position open if the current direction remains the same. If you short a stock, you can protect yourself from losses if the price goes too high by using a stop loss order. Setting a stop loss 0.20 below or above the price at which you bought or sold the stock will limit your losses to 0.20. If the price continues to fall and hits $40.10, the trailing stop will turn into a market order and you can exit the long trade at around $40.10, protecting a profit of around 10 cents per share. If the price continues to fall, this time to $10.76, the price will break your stop level, immediately activating a market order. When the price of a stock falls and reaches the stop price (calculated on either a percentage path or a dollar path), a market order to sell is triggered. If the share price drops to $115, the stop loss order is filled as a market order to sell (meaning you could also get less than $115 per share, depending on the availability and willingness of the buyers in the bag). For sell orders that use a percentage as the final amount, the distance in points between the share price and the activation price will increase as prices rise. --- This video is provided for informational and educational purposes only and should not be construed as investment advice. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. #trailingstopexample #trailingstopforex #trailingstopbuy #trailingstoppercentage #daytrading #swingtrading #technicalanalysis #barryburns #eminis #stockmarket #topdogtrading #stoploss go.topdogtrading.com/free-trading-strategy