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[Ellie4]

I have heard many people including big name writers saying that you should never turn profit into loss. Do they mean it literally? As when you have 1 pip profit, it's silly to close it out when its breakeven, esp if it's a long term trade. =)

[foamgod]

Originally Posted by Ellie4

I have heard many people including big name writers saying that you should never turn profit into loss. Do they mean it literally? As when you have 1 pip profit, it's silly to close it out when its breakeven, esp if it's a long term trade. =)

Maybe 1 pip profit is not a "good example". Take for instance, the position is already at +20 pips, the least you could do would be to move your stop to break even point.

Take another example, your position is at +100 pips. You thought you are on a lucky streak and continue to hold the position with no stop, or at your initial stop that will give you a loss. Then suddenly, the price turns and you allow a +100 pip winning position to become a loss. (I would be sick in the stomach.) The least you could do would be to move your stop to break even point.

Your trading strategy is an important factor of course. There may be more suitable TP and SL positions as your trade progresses. The point is, as and when possible, try not to let a winning position morph into a loss.

[mahras]

Depends how long term you are talking about. Say your typical position stays open for a week it wouldnt be the smartest idea to move the stop to breakeven after only 20 pips. Keep it in perspective. 20 pips= only .0020 movement. For an intermediate term trader (one that trades per week) think about moving stops after at least 40-50 pips.

[cicero]

The best way is to use Trailing stop,
You are locking your profit.
cicero

[foamgod]

Originally Posted by cicero

The best way is to use Trailing stop,
You are locking your profit.
cicero

If you can, some brokers offer a minimum of say, 30 pips. It would be "irrelevant" to those who trade short-term. 10-15 pips... ok, worth considering. Then again, it depends on your time frame and profit target.

[TheWolf]

I've never understood it - why do brokers offer a trailing stop limit i.e. minimum of 30 pips? Kinda silly imo.

[foamgod]

Originally Posted by TheWolf

I've never understood it - why do brokers offer a trailing stop limit i.e. minimum of 30 pips? Kinda silly imo.

Search around if you are bored, we have another thread discussing this not too long ago.

[cicero]

Originally Posted by TheWolf

I've never understood it - why do brokers offer a trailing stop limit i.e. minimum of 30 pips? Kinda silly imo.

Because longer you stay on the market higher risk.
Easy money for Refco/FXCM.
Refco changed from 30 to 10.
Meta are offering min.5 pips trailing stop.

[Gamma_Jammer]

I think you shouldn't necessarily move your stop to b/e as soon as you can. Have to speculate to accumulate.

I'd rather close half my position and leave a wider stop on the rest. If your stop was in a good technical point when you opened the trade, that's not gonna have changed in all probability. Ratcheting your stop up too tightly, while an emotional crutch (as it's natural to try and avoid losses) is just gonna mean a slow death in many markets - you'll get stopped out of loads of positions too early.

My $0.02

GJ

[elmagd2000]

Many recommend to move your S/L to B/E when you are up same amount of S/L.
Example: if you use 35 pips S/L then when you are +35 move to B/E. I recommend as well to trail every same amount meaning at +70 move S/L to +35 and so on till the market get you out. The trading game is all about descipline and patience. When you set -35 as S/L and +100 as a Target, don't get out unless market hits one of them.


Hani

[Gamma_Jammer]

I think a lot has to hinge on your basic strategy. Those trying to pick tops and bottoms will find their trades usually have a different equity profile over time than those trading breakouts. Stops, and the way you trail them, have to take this into account.

[MadisonFX]

If you interesting in trailing stops and a overall amazing multibank platform, I am an IB for EFX Group. You can email me at k.sazer@efxgroup.com.

Keith