What is a trailing stop loss?

A trailing stop loss order adjusts the stop price at a fixed percent or number of points below or above the market price of a stock.

There is no correct way to utilize a trailing stop loss.  Only you know your risk level.  Only you know how much you need or want to make.

How do you determine how many points to place your trailing stop?


Honestly, we recommend playing with the trailing stop loss to see what you are comfortable with.  Our traders will go from 50 points up to 200 points.  Each trader has a different comfortability level.  We recommend finding yours.

If you do not know what a lot size is or how it is calculated, please visit BabyPips for a great explanation.

To determine what lot size to use really falls on how much of a risk taker you are and what margin size your broker gives you.  We have found the following below to be a perfect way to determine what lot size we want to take.

We recommend sticking to the basic Forex pairs:
USDCHF, GBPUSD, EURUSD, USDJPY, USDCAD, AUDUSD and NZDUSD we reommend those only because their spread is not as crazy as some of the others.  But it is your money and if you want to venture onto others...we can't stop you.

Lot Size Time Table
 

• For any balance greater than $50 but less than $60 use 0.01 lot size
• For any balance greater than $60 but less than $70 use 0.02 lot size
• For any balance greater than $70 but less than $80 use 0.03 lot size
• For any balance greater than $80 but less than $90 use 0.04 lot size
• For any balance greater than $90 but less than $100 use 0.05 lot size
• For any balance greater than $100 but less than $150 use 0.10 lot one position
• For any balance greater than $150 but less than $200 use 0.12 lot one position
• For any balance greater than $200 but less than $300 use 0.15 lot one position
• For any balance greater than $300 but less than $450 use 0.2 lot one position
• For any balance greater than $450 but less than $600 use 0.25 lot one position
• For any balance greater than $600 but less than $1000 use 0.3 lot
• For any balance greater than $1000 but less than $2000 use 0.4 lot
• For any balance greater than $2000 but less than $3500 Use 0.45 lot
• For any balance greater than $3500 but less than $5000 Use 0.5 lot
• For any balance greater than $5000 Use 1 lot, and by this amount you should have a great grasp of money management to determine your lot size for higher amounts.

We have found that this will help us manage our trades and money better.

You can also use a lot size calculator like the one below.