A type of stop-loss order that moves with the price of a stock, setting the stop price at a fixed percentage below the market price.
A type of stop-loss order that moves with the price of a stock, setting the stop price at a fixed percentage below the market price.
Street Wall St.'s Definition:
What exactly is Trailing Stop? A type of stop-loss order that moves with the price of a stock, setting the stop price at a fixed percentage below the market price. How is it Used on the Street? 🏙️ As the stock goes up, your safety net moves up with it. If the stock suddenly reverses, the net catches you, locking in most of your profits automatically. When Do You Actually Use This? ⏱️ When you're in the trenches making short-term moves and trying to capitalize on immediate price action. This isn't about holding for ten years; this is about sniping opportunities, riding volatility, and securing the bag quickly. You use this when execution and timing are everything. It requires extreme discipline, strict risk management, and the ability to execute your plan without letting greed or fear take the steering wheel. The StreetWallStreet Pro Tip 🔥 Difficulty Level - Intermediate: This is where you actually start to level up. Getting comfortable with this concept gives you a serious edge over the retail crowd who are just blindly throwing darts at a board. Start applying this to find your unique edge in the market. It might take some practice and a few mistakes for it to click, but once you internalize this, you will see market setups completely differently.