using a fixed profit target or employing a trailing stop approach
May 23, 2023 at 21:57
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2 Replies
Member Since Mar 16, 2023
28 posts
May 23, 2023 at 21:57
hello every one!
i was wondering that are you all using a fixed profit target or employing a trailing stop approach to capture potential further gains?
which one do you prefer?
i was wondering that are you all using a fixed profit target or employing a trailing stop approach to capture potential further gains?
which one do you prefer?
Member Since Jan 16, 2023
1 posts
May 23, 2023 at 23:05
(edited May 23, 2023 at 23:08)
Hi NathanialChen.
Hello everyone!
I hope you're doing well. Regarding your question, I would like to discuss the two approaches you mentioned: fixed profit targets and trailing stops.
A fixed profit target refers to setting a predetermined price level at which you plan to exit a trade and secure your profits. This approach allows for a clear and predefined exit strategy, ensuring you lock in your desired gains.
On the other hand, a trailing stop approach involves adjusting your stop-loss order as the price moves in your favor. This means that if the price increases, the stop-loss level is adjusted upward, allowing for potential further gains while still protecting against significant losses if the price reverses.
Both approaches have their merits, and the choice ultimately depends on your trading style, risk tolerance, and market conditions. Some traders prefer fixed profit targets as they provide a specific goal and a clear exit strategy. Others prefer trailing stops as they allow for flexibility to capture additional gains if the market continues to move favorably.
It's important to note that no approach guarantees success, and it's essential to thoroughly analyze the market and adjust your strategies accordingly. Additionally, it can be beneficial to experiment with both approaches and see which one aligns better with your trading goals and preferences.
Ultimately, the choice between fixed profit targets and trailing stops depends on your personal trading style and what works best for you. It's always a good idea to keep learning, adapting, and refining your strategies as you gain more experience in the markets.
Yes, so... I actually use both approaches, but not exactly as I mentioned before. Most of the time, what I do is use fixed targets, one with a certain measure and another one with twice that measure, and I apply them according to each specific scenario that I've outlined in my own thinking process.
For cases where I'll be away from the trading terminal, I activate the trailing stop as a safety measure. When it notifies me that it has been activated, I stay alert to see if I can already lock in the risk or if I should wait for further confirmation. However, the other approach is also wonderful. I really enjoy leaving the take profit level open using trailing stop reasoning, but I don't usually do it in a linear manner with the price advances. Instead, I align it with the measures in my thinking process according to the observed movements.
I believe that fixed targets provide a good way to secure profits, while trailing targets offer increased opportunities. It's important to weigh your beliefs and financial situation when making a decision. Ultimately, you should make a decision based on your own judgment and assessment.
I hope this helps! Let me know if you have any further questions.
edit- note that I used trailing stop for different things, one is the act of moving manually the stop gain, and the other is to set automatically trailing stop with terminal software. both methods I use.
Hello everyone!
I hope you're doing well. Regarding your question, I would like to discuss the two approaches you mentioned: fixed profit targets and trailing stops.
A fixed profit target refers to setting a predetermined price level at which you plan to exit a trade and secure your profits. This approach allows for a clear and predefined exit strategy, ensuring you lock in your desired gains.
On the other hand, a trailing stop approach involves adjusting your stop-loss order as the price moves in your favor. This means that if the price increases, the stop-loss level is adjusted upward, allowing for potential further gains while still protecting against significant losses if the price reverses.
Both approaches have their merits, and the choice ultimately depends on your trading style, risk tolerance, and market conditions. Some traders prefer fixed profit targets as they provide a specific goal and a clear exit strategy. Others prefer trailing stops as they allow for flexibility to capture additional gains if the market continues to move favorably.
It's important to note that no approach guarantees success, and it's essential to thoroughly analyze the market and adjust your strategies accordingly. Additionally, it can be beneficial to experiment with both approaches and see which one aligns better with your trading goals and preferences.
Ultimately, the choice between fixed profit targets and trailing stops depends on your personal trading style and what works best for you. It's always a good idea to keep learning, adapting, and refining your strategies as you gain more experience in the markets.
Yes, so... I actually use both approaches, but not exactly as I mentioned before. Most of the time, what I do is use fixed targets, one with a certain measure and another one with twice that measure, and I apply them according to each specific scenario that I've outlined in my own thinking process.
For cases where I'll be away from the trading terminal, I activate the trailing stop as a safety measure. When it notifies me that it has been activated, I stay alert to see if I can already lock in the risk or if I should wait for further confirmation. However, the other approach is also wonderful. I really enjoy leaving the take profit level open using trailing stop reasoning, but I don't usually do it in a linear manner with the price advances. Instead, I align it with the measures in my thinking process according to the observed movements.
I believe that fixed targets provide a good way to secure profits, while trailing targets offer increased opportunities. It's important to weigh your beliefs and financial situation when making a decision. Ultimately, you should make a decision based on your own judgment and assessment.
I hope this helps! Let me know if you have any further questions.
edit- note that I used trailing stop for different things, one is the act of moving manually the stop gain, and the other is to set automatically trailing stop with terminal software. both methods I use.
Expect the Best, Prepare for the Worst, and Embrace What Comes
Member Since Jun 08, 2023
8 posts
Jun 09, 2023 at 13:39
Hi NathanialChen! Ah, the eternal debate between fixed profit targets and trailing stops. Let's dive into this intriguing topic.
When it comes to capturing potential further gains, both approaches have their merits. Here's my take on them:
Fixed Profit Target: This approach involves setting a predetermined level at which you plan to exit your trade and take your profits. It provides a clear and defined goal, allowing you to lock in gains once the price reaches your target. Fixed profit targets are great for disciplined traders who prefer a systematic approach and want to ensure they secure profits at specific levels.
Trailing Stop Approach: The trailing stop approach involves adjusting your stop-loss level as the trade moves in your favor. It allows you to ride the trend and potentially capture larger gains if the market continues to move in your favor. By trailing your stop-loss order behind the price, you give the trade room to breathe while still protecting your profits. Trailing stops work well in trending markets, where you aim to capture as much profit as possible before a potential reversal.
As for my personal preference, it really depends on the market conditions and the specific trade setup. I consider factors like volatility, timeframes, and the overall market environment.
If I'm trading in a volatile market or during news events, I might lean towards a fixed profit target to lock in gains quickly and mitigate the impact of sudden price reversals.
On the other hand, if I'm trading in a trending market with a strong momentum, I might employ a trailing stop approach to maximize my potential gains and let the profits run as long as the trend remains intact.
Ultimately, it's essential to adapt your approach based on the specific trade, market conditions, and your own risk tolerance. Some traders even use a combination of both approaches, setting initial fixed profit targets and then trailing their stops to capture further gains.
Experiment, backtest, and find the approach that resonates with your trading style and aligns with your goals. Remember, there's no one-size-fits-all answer, so stay flexible and adjust your approach as the market evolves.
Happy trading, my friends, and may your profits be plentiful, whether fixed or trailing!
Best regards
When it comes to capturing potential further gains, both approaches have their merits. Here's my take on them:
Fixed Profit Target: This approach involves setting a predetermined level at which you plan to exit your trade and take your profits. It provides a clear and defined goal, allowing you to lock in gains once the price reaches your target. Fixed profit targets are great for disciplined traders who prefer a systematic approach and want to ensure they secure profits at specific levels.
Trailing Stop Approach: The trailing stop approach involves adjusting your stop-loss level as the trade moves in your favor. It allows you to ride the trend and potentially capture larger gains if the market continues to move in your favor. By trailing your stop-loss order behind the price, you give the trade room to breathe while still protecting your profits. Trailing stops work well in trending markets, where you aim to capture as much profit as possible before a potential reversal.
As for my personal preference, it really depends on the market conditions and the specific trade setup. I consider factors like volatility, timeframes, and the overall market environment.
If I'm trading in a volatile market or during news events, I might lean towards a fixed profit target to lock in gains quickly and mitigate the impact of sudden price reversals.
On the other hand, if I'm trading in a trending market with a strong momentum, I might employ a trailing stop approach to maximize my potential gains and let the profits run as long as the trend remains intact.
Ultimately, it's essential to adapt your approach based on the specific trade, market conditions, and your own risk tolerance. Some traders even use a combination of both approaches, setting initial fixed profit targets and then trailing their stops to capture further gains.
Experiment, backtest, and find the approach that resonates with your trading style and aligns with your goals. Remember, there's no one-size-fits-all answer, so stay flexible and adjust your approach as the market evolves.
Happy trading, my friends, and may your profits be plentiful, whether fixed or trailing!
Best regards
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