To Trail Stops or Not
Conventional wisdom says that you should trade with stops. No argument there. It goes on to say that trailing stops might not be a bad idea either. But, not so fast on that one. When you enter a day trade, based on a confluence of events, price will invariably come back to test your point of entry – as in, perhaps, a bona fide trendline break.
Yeah, in theory, trailing stops sounds like a good thing to do, but that idea is usually espoused by pure theorists who have never executed a trade in their lives, and haven’t got the foggiest idea what they’re talking about. Armchair quarterbacks I call them.
Check out my video, and I’ll show you what I mean:
http://www.forexmentor.com/forex-trading-videos/Jan2109.htm
Then, maybe you’ll think twice about trailing stops.
Have a great day!
Peter Bain
forexmentor.com
