How To Set A Trailing Sell Stop
Feb 6th, 2009 | By William Boyett | Category: Stock InvestingSuppose you want to ride a stock up but sell the moment it experiences a 10% correction.
Use a Trailing Stop. To do a Trailing Stop you simply select it on your brokers trading page.
Then you are given 2 choices:
1> do you want to work with “points” or “percentages”. I usually use percentages.
2>the second choice is the increment:. Do you want to sell at a 10% drop or a 15% drop?
(put whatever percentage in here)
Now your stock will be sold whenever the stock experiences the % drop you specified.
For example, if you set a 10% trailing stop on YYY and the stock rises to 3.83. Your trigger (the price you sell at) is adjusted to 3.83 – 10% = 3.45. Should the stock hit 3.45 it gets sold. The trigger stays at this price until YYY climbs above 3.83, then the trigger moves up accordingly.
Your trailing stop price always trails by the set percentage and can only move up, it never moves down.
I got t.d. ameritrade because thwey owe me 10 trades,Iasked about a3% trailer and they said it was too tight and higher is better.The real Question :I don’t understand the terms of the categorys of the weeks stock picks, the best in the worst performing market the best in the best. I am unable to read more than a few minites and I want to cut to the quick and get your best of the best rocket ride of the week. I just cant deal with Zacks, stock proffit, penny stock fortunes, angora,somebody else just trying to sell more info. It looks like I like yours best but I don’t understand which is the best of the weekfirst and foremost. I would appreciate any counsil you have. Thanks.{ I have stock locater}
3% is too tight. I usually set mine at 8% to 10%.
Also from what I gather you are subscribed to my FREE stock investing newsletter. In the FREE newsletter I give you a list of stocks I feel are ready to explode. It’s up to you to decide the proper buy and sell points.
If you want me to tell you EXACTLY when to buy or sell, you’ll need to upgrade to my PAID newsletter. You can signup here and get a free trial where you get a chance to make profits that you can then use to cover the costs of the service:
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