Do you use Trailing Stops?
Well you either answered yes or no. The right answer really depends on several of things actually, but one of the core elements to keep in mind when deciding if your trading method should include trailing stops is of course your total account equity. You should never risk more than you can afford to risk and you should always keep a good working knowledge of what that equates to. This will of course vary from trader to trader. Industry Standards typically suggest no more than 2 to 3 percent of your account should be risked on any single trade.
While I cannot provide you with financial or investment advice I can tell you definitively that if you are able to trade the futures markets in a manner and on a scale that allows for them, that TRAILING STOPS can be Highly Beneficial for a variety of reasons. Make sure and read all the way to the end of this post and watch the VIDEO at the end..
1. Trailing Stops allow you to have Maximum Gains by giving a market room to ebb and flow and therefore managing the trade dynamically so that profits are not taken too soon.
2. Trailing Stops allow you to be in a position of guaranteed break even or profit regardless of what happens to the market. With the Ninja Trader Platform you can manually trail your stops VERY EASILY with the Chart Trader Feature.
3. Trailing Stops provide a method for MINIMIZING losses when an entry goes bad. You see with the right trailing stop the trader can many times “ratchet down” the initial protective stop a significant amount. Many times this will amount to hundreds of fewer dollars lost in the event of an ultimate stop out was executed. For example in a situation where a full stop out was inevitable, the right trailing stop method can drastically reduce the amount that would have been lost had that stop not been adjusted.. Ultimately this protects profits and the traders bottom line is improved.
4. Trailing Stops when properly filtered will provide the trader with a very high probability of timing exits perfectly in order to achieve more potential profits from disciplined day trading.
So for those four reasons
- “What are some of the best ways to set and trail stops both protective and as profit taking measures?”
- “How do I trail my stops?”
My answer is that there are several VERY Effective ways that you can create and utilize your own trailing stops, but there are three that I particularly like. I find these three Stop Trail routines incredibly easy not only to learn, but to teach as well.. I have seen the approaches that I am about to share with you save traders literally thousands of dollars in would be losses had they not learned to implement these techniques. Of course these are also the Three Core Techniques within the Boulders and Breakaway Bars Trading Method.
So here they are.. Watch the video below and I will show you first hand how I do it.
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