trailing stop loss -

This Trailing Stop Method Generated 4.1% ROI today

The runner for the day for me was PTPI I set a buy limit order of 1,129 shares at 4.18 and placed a 1% trailing stop order immediately after my order was accepted and got stopped out at 4.36. I ended the day with a 4.1% profit today. The stock moved so fast it would've been difficult to catch by manually adjusting  stop loss order up. The great thing about trailing stops is that the order goes in immediately. Sometimes when you place a regular stop loss at a specific price the stock may move too fast and you don't have enough time to place your order. With a trailing stop there is no specific price, it goes based upon the time in which you placed your trade at either the bid, ask or last trade price.  If the stock keeps going up it will trail the stock until it comes down 1%.

The trailing stop has some great benefits and some negative benefits. They work perfect when a stock goes up immediately with not much volatility. The negative side of trailing stops is that when a stock goes up and is volatile you will get stopped out too early before the stock can run up and maximize your profits. However even though you get stopped out early you can still make some profits. The good thing is that when you do get stopped out you will only lose the percentage or price amount you set up to lose. I usually do a 1% stop loss so when my stock goes up 4% and comes back down 1% I make a 3% profit. This morning my stock went up 5.6% but then the stock turned around and stopped me out at 4.1% profit.

As you become a more experienced trader you will realize how time of the essence. You need your buy and sell orders to go through quickly, any lag time or mistakes made can cost you a lot of money. A trailing stop is great because your order is placed quickly. A trailing stop is a really good trading strategy to use for beginner stock traders. It allows to new traders to add automation to their trading and not have to worry about manually adjusting stop losses to capture profits.