1. Stock Market Secret Trailing Stop ? The Golden Lifesaver

A trailing stop locks in profits and saves your financial life if the market turns against you when you trade stocks online. It is a stop-loss order at a percentage or dollar amount below the market price for a long position. The trailing stop price is adjusted as the price fluctuates. If the stock price doubles your trailing stop will sell once the price falls back a dollar percentage from the new high.

If you had a 10% trailing stop and your stock went from $50 to 70$ and then fell the trailing stop would sell your shares at 4^3 ($70 – ($70 x.1) = $63. If you had a dollar based trailing stop of $6 and the stock hit $70 and retreated it would sell at $64 ( $70 – $6)= $64.