Last night’s video talked about trailing stops. Having a stop at previous bar’s low. It’s simple, beautiful and could be a turning point in my trading. I never knew when is the right time to book profits. On a weekly chart for a high RSI and high growth stock such as TEAM, you are practically guaranteed profits. Depending on market volatility, profits may vary.

It works best when engaging in true swing-trading (trading for swings, not post-breakout follow-throughs) and also day-trading. For position trading, it can be useful for situations in which one is looking for a confirmation of the decision to exit a winning position, i.e. a second reason. It can also be used by a position trader who will tack on more bars behind which to trail the stop, e.g. a two-bar trailer or three-bar trailer.