Do you use Trailing stops, hard stops or both?

KCalhoun said:
Good discussion topic -- what type of stops do you find yourself using the most?

I use hard stops at 2day lows for swingtrading then manually raise them as needed.

For daytrading I've found it best to use both, depending on the chart. I'll often use a combination of both, to minimize being shaken out.

What's your preference?
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KCalhoun,

I start the trade with a hard stop.

Depending on market conditions I will:

1. Exit at Profit Target
2. Use trail stop method to adjust the stop every X amount of tick
3. Use trail stop method to adjust the stop based on market structure.

Sometimes the price takes off fast after I enter, and I have to use step 2. Sometimes price dancing around back and forward and I have to use 3. Sometimes its in a range I have to use 1.

Still doing testing to see what kinda fits me. Hard to choose, so I be discretionary.
 
I use hard stops rarely trail them but if I do it is manually. Since I scalp I am usually out pretty quick. If I go for an intraday swing of 2 or more legs in say a MM I may trail it closer as each new leg starts but that trailing is always done manually.
 
I used to have hard stops in the market bur got slapped pretty hard with the flash crash a while back. since then I have alerts that let me know if a stock is nearing a stop target. As a swing trader I usually wait until the next morning to act on a stop and may continue to hold or place a hard stop depending on price action.

When day trading I have hard stops.
 
Both. For trailing, I only use to BE level. Not to let profit run. I am still researching the appropriate condition to use trailing stop to let profit run.
 
Initial loss hard stop beyond prior swing pivot(s), then once in profit trailing based on each current individual trading scenario. No one size fits all. Also I almost never use a profit target.

Where I cut my loss is in my control, exceptions being news related (tweet, tweet) gaps, but where I exit with a profit the market/price action determines. No exceptions!
 
Good posts, thanks.... useful insights!

Big picture on a related note I've been struggling with choppy markets lately, anyone else?

My best recent swingtrade is PENN, but regardless of stop type I've been losing more than winning the last few weeks. Frustrating af.... I'm overtrading, not waiting for strong enough setups.
 
KCalhoun said:
Good posts, thanks.... useful insights!

Big picture on a related note I've been struggling with choppy markets lately, anyone else?

My best recent swingtrade is PENN, but regardless of stop type I've been losing more than winning the last few weeks. Frustrating af.... I'm overtrading, not waiting for strong enough setups.
More...

Been trading at wrong times and getting chopped to, why I keep SL so tight 4 losses made up for with a big run, it's just hard to stay on plan after 4 losses and not get gambly.

Take a few days off, just watch, get back in tune with the crazy conditions.
 
KCalhoun said:
Good posts, thanks.... useful insights!

Big picture on a related note I've been struggling with choppy markets lately, anyone else?

My best recent swingtrade is PENN, but regardless of stop type I've been losing more than winning the last few weeks. Frustrating af.... I'm overtrading, not waiting for strong enough setups.
More...
Ken
You have far more experience than me but my trade picks are in your list too except you trade lot more securities. Try removing all inverses from your pick. I suspect that may be offsetting your gains. The current market is unforgiving on inverses. Tqqq swings 6 points these days.
Another idea is not to have stops to exit soon or even hanging on to the bag but add more hoping market will come back in the event it retraced.
Volatility has disengaged from covid news and china trade war news. Need new catalyst for retrace.
 
Turveyd said:
Been trading at wrong times and getting chopped to, why I keep SL so tight 4 losses made up for with a big run, it's just hard to stay on plan after 4 losses and not get gambly.

Take a few days off, just watch, get back in tune with the crazy conditions.
More...

Right, good idea to take it easy, will trade exclusively gap runners and 2dh breakouts on small size.

It's a LOT like playing poker, cash hold'em getting rags for hours waiting for something playable imho
 
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