MoneyMakingForex.com

Online Broker with Trailing Stops

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MetaTrader

The simplest way to trade using stop limit orders is to trade with any broker that uses MetaTrader. For example, FXDD, InterbankFX, or Windsor Brokers.

The one thing you have to remember is the trailing stop is running on your computer. If you shut it down, or if your system crashes, you'll lose your trailing stop.

Trailing Stops - Good?

If you would, I'd like to digress a little. Are trailing stops good? It depends what you want. You see, most traders will just say that trailing stops are good no matter.

I don't think that is the case. Think about it. Trailing stops are a conservative tactic. Nothing in life is free. That means by gaining more security of your profits, you are giving something up. What is it?

Bigger profits. You've giving up money in exchange for (possibly) less risk.

What?

You don't understand yet? Let me explain it this way. You have your entry signal. So you enter the market. Let's say you put in your stoploss 30 pips below your entry. The price moves 15 pips your way. You trail your stoploss up 15 pips. It's now just 15 pips below your entry.

For some reason the next candle has a long shadow downward. It takes out your stop loss. To candles later your now non-existent profit target is hit.

You got your loss on the trade small. Only 15 pips. However, if you hadn't tried to make your risk smaller, you would've had a profitable trade.

See? Nothing is free. If you want smaller risk, you've have to accept taking a loss on a winning trade. Is it worth it? You decide. After all, it's your money.