What is a good trailing stop percentage? It is a ratio of the size of a trade to the size of the stop loss. It is an important part of any successful trading system and can make the difference between a successful day and a losing day. Traders who know about it and practice it diligently are the ones that are going to be able to reap the rewards from their trading strategies. They are also the ones that are going to be able to tell when they are not getting their stops taken care of and are putting their trading capital at risk.
Trading involves a lot of risks, and as such any successful trader has to know how to minimize their losses as much as possible. One way that people do this is by stopping their trades before they reach the size where they would lose money. They have two options in this – take partial profits on their stop loss, or take full profits if the trade goes against them and hits them with a negative exit percentage.
Both of these tactics are used with a certain amount of success. One of the reasons for this is because most systems allow for the use of stop-x, or partial, profits. This is good news for new traders, as well as traders looking to refine their systems. A good trailing stop percentage will allow you to maximize your profits and lower your risk while doing so.
So, what is a good trailing stop percentage, then? It really comes down to the size of your trade and the risk involved. The smaller your trade size, the less you need to take a loss. As such, you want to take the smallest amount of profits that you can, and spread them across as many trades as you can handle without having to hit a losing stop-loss.
In order to do this, however, you will want to be taking a lot of small losses, and not taking any larger ones. You do this by using a stop-loss strategy. This is where you set a specific price that you’re willing to lose, and will lose any profit that you incur on any losing trade, no matter how large it is. This way, you don’t risk taking too much of a hit, and at the same time, don’t open up too many “hot” trades to hit a losing one.
So, what is a good trailing stop percentage? You’ll find that it is somewhere between 60% and 70%. Ideally, you’ll want to aim for about a medium range, and possibly a lower limit of about 55%. That way, you can make some decent profits while still avoiding major losses.