Advantages of trailing stop:
1, which will not turn profit into loss.
Through trailing stop, the stop-loss price can be continuously adjusted with the increase of profit. Even if the price suddenly turns around and runs in the opposite direction, it can close the position in time and lock in the profit. It is very annoying and unacceptable for a floating profit list to become a loss list.
2. Limited losses and unlimited profits.
Through trailing stop, when the price moves in the opposite direction, even if the stock is closed, the loss can be locked. In fact, many times it is not a loss, but a little less. However, as long as the price does not reverse to your stop loss, but remains profitable, then trailing stop will constantly modify the trading order and improve the profit level of the stop loss. Spot gold rose by $5, and my stop loss was $3, so I made a profit of 30%. It went up by 10, and my stop loss was set at $8, with a profit of 80%.
How to set up trailing stop?
First, the opening of trading software is the premise of mobile stop loss.
We must set the moving stop loss through the instruction and send it to our own mt4 service. Mobile stop loss can be executed without closing the software such as take profit point or stop loss point.
Second, when it comes into effect, the color changes.
After trailing stop's position is set, we right-click the trading order, which is the number of points we move the stop loss. If we set it successfully, the color of the corresponding stop will change.
Third, you need to pay attention when setting a moving stop loss.
At present, the quotations of many trading platforms are roughly divided into two types, one is four decimal places and the other is the last five. For example, FXCM Global Jinhui, China Eastern Airlines provided five places, while FXSOL got four. The last four quotations are meaningful quotations, which need our attention for the five investors who speculate in foreign exchange on the platform.