Importance of a technical software that gives trailing stop loss

The importance of a software that provides trailing stop loss value

July 31st, 2017 → 1:22 pm @ WinTrader

The stop loss and trailing stop loss are provided by online brokers to protect their investors from significant losses. Stop loss is the most commonly used order. Another type of order is the trailing stop loss. Now a day’s active traders use trailing stop loss as a solid tool for trading. These orders help traders to eliminate their emotions. And the main aim behind this is to limit investor’s loss on a security position. This order will automatically sell/buy when there is a significant drop down occurs in the market. And if you think Stop loss as its name suggest always forced you to exit in loss. It happens if you are choosing a choppy market. If you enter into a volatile market and placed a stop loss order, in that case loss will be the result. But the active traders use trailing stop loss profitably. It is extremely difficult to work with trailing stop loss orders in liquid stocks or in fast moving market.

Let’s us consider a simple example. Consider at 100 you buy a stock and place your stop loss order at 95 and target at 105. By seeing the uptrend movement of the market you change your target at 110 and the stop loss is still in 95. Unexpectedly market gets reversed and what happened is your stop loss hit rather than your target. But if you use trailing stop loss when the market reaches your first target you can change your stop loss to the next level may be 103. So even if the market is get reversed you can exit profitably. This is the actual difference between regular stop loss and trailing stop loss.

It is very difficult you to understand the trend of stocks and how it can be better managed with an actual stop loss or trailing stop loss. Our software provides you the same without any difficulty. In our software the stop loss is adjusted automatically with the pre-set amount or percentage. This trailing stop loss shows the amount that you are willing to loss without limiting the amount of profit you can take. In addition trailing stop loss is available for all the scrips in the trading platform. The software protects your profit. You will get direct stop loss so that you can save the excess time and effort for the calculations and your emotions can be taken out. The advantage of trailing stop loss is that it is more flexible than regular or fixed stop loss. The attractive advantage is that it protects your capital even if the price drops. The added protection here is that the trailing stop loss will only move up. During market time, software trailing feature will again and again recalculate the stop's trigger point. While using wisely it will be an effective tool, and it can help you to clear up your position with a profit or with a limited loss. Trailing stop loss order does not put a roof on your profits. You can purchase Shares as long as the prices do not dip by your assumed percentage.

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