Trailing Stop: how to protect profits without limiting the potential of the trade
One of the most common mistakes in trading is not entering poorly, but exiting too early. The fear of giving back profits often leads to premature closures, especially in volatile markets. This is where the Trailing Stop becomes a key tool within a modern risk management strategy.
What is a Trailing Stop and how is it different?
Unlike a traditional stop loss, the Trailing Stop is not static. It moves automatically in favor of the price when the market advances in the direction of your trade, but remains fixed when the price pulls back.