do you keep adjusting stop losses?

Sub-Zero

Junior member
40 1
Hi everyone so I have been thinking about something. Say that a price is trending upwards so far it's gone from 80.05, 81.36, 82.32 for example before you enter the trade you might have a stop loss of for example 79.2 but as the price is rising do you adjust your stop loss? On an unrelated note, I've been paper trading and far out it's pretty fun lol. It will probably be even more exciting once I put real money on it (Though I probably shouldn't get too excited), people said that day trading is supposed to be boring but which part is boring? Wait for the stock to move up or?
 

tomorton

Legendary member
7,443 1,005
The only time I trail my stop higher (on a long) is if I am pyramiding. When I add the second trade I move the first trade's stop to at least break-even, sometimes above. Either way, my second trade's risk added to the first trade's (new) risk can not be greater than the original risk on the first trade's initial stop.

I sometimes don't pyramid until Trade 1's gain reaches 2 x its original risk.

I can't agree with moving the SL on a trade to b/e just to protect its gain. The aim of this game is to make money. If you think price will probably not go higher, get out. If you think price will probably not go lower, buy.
 

Quantt

Established member
944 57
Hi everyone so I have been thinking about something. Say that a price is trending upwards so far it's gone from 80.05, 81.36, 82.32 for example before you enter the trade you might have a stop loss of for example 79.2 but as the price is rising do you adjust your stop loss? On an unrelated note, I've been paper trading and far out it's pretty fun lol. It will probably be even more exciting once I put real money on it (Though I probably shouldn't get too excited), people said that day trading is supposed to be boring but which part is boring? Wait for the stock to move up or?
Yes, what I do is I am adjusting the stop to have a similar risk like in the beginning, for example if I am risking 1R on a trade and I am up 2R will adjust the stop up another R, so the risk is again 1R and I have already 1R in the bank if the price drops 1R from the top... You'll have to backtest your system to see what will work for you...
 
  • Like
Reactions: tomorton

Kaeso

Established member
836 91
it's gone from 80.05, 81.36, 82.32 for example before you enter the trade you might have a stop loss of for example 79.2 but as the price is rising do you adjust your stop loss?
yes in this example the SL is 85 points away and you entered at 80.05?

so when its gone up 227 points to 82.32 you are in profit about 2.7 X RISK, personally id be cashing in but if you are looking to ride further id definitely be moving SL to breakeven or more.... :D
 

Sub-Zero

Junior member
40 1
Ok thanks for the responses guys was helpful.
 

NVP

Legendary member
36,775 1,880
Hi everyone so I have been thinking about something. Say that a price is trending upwards so far it's gone from 80.05, 81.36, 82.32 for example before you enter the trade you might have a stop loss of for example 79.2 but as the price is rising do you adjust your stop loss? On an unrelated note, I've been paper trading and far out it's pretty fun lol. It will probably be even more exciting once I put real money on it (Though I probably shouldn't get too excited), people said that day trading is supposed to be boring but which part is boring? Wait for the stock to move up or?
Moving stop losses is the only way to retain and secure profits before the price reverts back to mean

Plenty of options out there to manage this .....here's an old thread of mine that explored ideas

http://www.trade2win.com/boards/forex/117416-best-exit-strategies-forex-market.html#post1416288

N
 

AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock