using a fixed profit target or employing a trailing stop approach

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?

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.