Stocata.Org - Technical Analysis training course learning video part 29, a video about applying a risk management system for trading the stock market with trailing percentage stop. A trailing stop should be used as a last warning signal to close a trade when other technical or human signals fail, that way preventing losing profit. The very last warning is of course the initial stop. We start the trailing stop methods with the fixed percentage trailing stop. Here we calculate the maximum allowed loss based on a fixed percentage of the closing price.
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