📈 **Protect Your Gains and Let Your Trades Run with Trailing Stop!** 🚀
Have you ever wished that your Stop-Loss moved automatically to secure more profits as the market goes in your favor? There is a tool for that: the Trailing Stop!
What is a Trailing Stop? 🤔
It is a type of Stop-Loss order that automatically adjusts as the asset's price moves in your favor. Unlike a fixed Stop-Loss, the Trailing Stop follows the price, maintaining a predetermined distance (in percentage or points) below (for long positions) or above (for short positions) the current price.
How does it work?
Imagine you have a long position in BTC and you bought it at $60,000. You decide to place a Trailing Stop of 2% below the price.
* If BTC rises to $61,000, your Trailing Stop will automatically move to $59,780 (61,000 - 2%).
* If BTC continues to rise to $62,000, your Trailing Stop will move to $60,760 (62,000 - 2%).
* But, if the price of BTC starts to fall from $62,000 and reaches $60,760, your order will be triggered and your position will close, securing part of your profits!
Advantages of using a Trailing Stop:
1. Protects your profits: As the price moves in your favor, the Stop-Loss adjusts, ensuring that you don’t give up all your gains if the market reverses.
2. Allows your gains to "run": You don’t have to constantly monitor and manually move your Stop-Loss.
3. Reduces stress: Less need to constantly watch the chart to adjust your exit levels.
Make sure to choose an appropriate percentage or amount for your Trailing Stop. If it is too tight, you might exit the trade due to a small fluctuation; if it is too loose, you could lose more profits than necessary. Practice and adjust according to your strategy!
Do you already use Trailing Stop in your futures trades? Share your experience! 👇
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