Using Initial And Trailing Stops by Sylvain Vervoort
ARTICLE SYNOPSIS ...Using Initial And Trailing Stops by Sylvain Vervoort
In this first of a three-part series, we will look at initial stop methods and compare trailing-stop strategies starting with a fixed-percentage trailing stop.
Most people have no problem buying a stock, but selling it is another matter. Selling is best accomplished based on technical analysis signals reaching a price target, breaking a trend, money management, or whatever rules you apply for trading the stock market. But you must also consider a last warning signal. This warning is an initial stop and a trailing-stop signal.
In this se...