The financial market is a very rewarding industry indeed but, trading is a highly technical job with years of experience required and not something you can do by watching RU-vid videos or finding silly patterns on a graph in your bedroom…
Lol! It’s no gamble. But if you treat the market like a casino then the market will treat you like a gambler! I believe it’s best to leave some things to the professionals
My trades are being managed by Ms. Christine Mila, a FINRA-certified pro trader and risk analyst. She gives me directions in the market and with her system I’m able to record consistency in my outcomes without major detriments to my portfolio.
Most people don't have the patience or faith in long term investing. I use 2x ATR as my intitial trailing stop loss, and I don't touch it. This has worked quite well, but my trades can last months. Most don't have the patience- it's an instant gratification world.
In the 10 years simulation, what do you do after the positions are sold? In real life, people will try to get back in after stock drop further from previous sell point. That will ensure additional profits.
Thank you I have been trying to base mine off the ATR. But it can be so subjective based on where the current price is within the range, previous abnormal volume and gaps. I felt like I was guessing a bit too much. I look forward to testing this strategy out.
Great info. This video is from 3 years ago. Is there a way to check for updates in the percentages? The ones in this video are based on the averages from the 10 years previous to the video. Where is a good place to look up these averages?
For large cap, wouldn't a 25%-30% trailing stop be a bit much, like your not really mitigating much loss there. Also I think you should backtest based on the volatility of the stock. For example, although WMT and Tesla are both Large cap, Tesla is much volatile and a 10% trailing stop would be more likely to get hit then WMT. Simulation should not be based on market cap alone.
How do you set your stop so you can sit there watching and follow it up and down without having to change stop your order? I've seen people follow their stop up and down but they didn't show how to set it. Do you have to uncheck the box that makes you confirm a new order?
This was very helpful! Especially the research for the best % for large, medium, and small cap stocks. Is it possible for you to determine the best percentages for SPY and QQQ? That would be an awesome video!!
Do you recommend setting trailing stops with your broker? I have been advised NOT to do this as market makers can see your orders and clean you out if the circumstances present themselves.
Hi. What about the Fibonacci Golden Ratio, 61.8% (38.2% in relation to your examples of 35, 30, 25% etc.)? For example, I have decided that a company is a good investment, I do not want to check their market cap/it is in a smaller country... Thank you.
If one day a stock goes up the new high price considered by the trailing stop order is the one at closing of the day at 4:00 pm? Or it is the highest price the stock reaches during the day?
But, its a different percentage all together for ETFs such as S&P 500, since it usually only move up or down about 1-2% , I usually put my trailing stop loss at 4%
I usually do a 3% TSL and sometimes 2% but since I started doing this my account has started to grow. Before doing this I would hold on to bad trades. Now I do this automatically and it has taken my emotions out. I figure if my timing is off I can always reenter.
I bought 10 shares and I want to sell 2 shares at 7% 2 shares at 15 % gain 2 shares at 22% gain and the rest 4 shares a Trailing stop at 15 % but I like also to put a trailing stop of my 10 shares at 15% in case the market turn down right away . Can I do that ? Is there a way to do that ? my broker won't let me do that . thank you for help
Well it depends how you look at it. If you have enough money to cover the cap gain taxes, then when you re-buy at the low and you will have more shares when you recycle the gains. Also if it doesn't keep going up you will lose more and more. On the other hand if it keeps on a general trend upwards then does it really matter? *Risk management* Ive gained a few pretty pennies with trailing sells and trailing buys afterwards on the same stock. At least that's my personal opinion.
If you’re gonna use a 35% trailing stop you might as well not use a stop at all So when it craters you have to hope it doesn’t trigger that stop so you lose 35%?
I don't understand how these returns are calculated. You say the 35% trailing stop was the best for large cap. Is that simply because you're more likely holding the stock for a the 10 year duration vs. a 10% trailing stop? Are you not re-investing after the 10% trailing stop hits? That would make sense why 10% underperforms since you're just simply invested for a way shorter amount of time.
You site backtesting of 10 years to assert the best strategies for setting trailing stops. I would like to see some of that info and how it was derived. You suggest Small, Medium, and Large Cap percentages but neglect to say anything about Mega caps. Any suggestions related to that? Are the suggested strategies related to whether or not you have profit within the underlying or are they primarily related to preserving invested capital loss, or does it apply no matter where you are (gains/losses) within the underlying? I appreciate your perspective, as many other trailing stop advocates are talking mostly about day trading or swing trading, rather than longer-term investors. If you could further elaborate on your application of this strategy, it would be appreciated.
i dont know if you answer questions but... Is there such a thing as setting a price at which a trailing stop get activated/ triggered . For example: set a 30% trailing stop activation once XYZ ( currently at $40 ) surpasses $55 a share. I am on standard TD Ameritrade website and cant figure it out.
I suck so bad.. I use Mac d, s/r, rsi and MA and still suck. Only way I can make money is too aim for 2% profit off every trade.🤦🏽♂️, Is that normal.. what percentage of risk should I set for stop loss