Track 'n Trade Stocks High Finance
Adding Trailing Stop Orders
In this video, we want to demonstrate how to place a Trailing Stop Order within Track 'n Trade Stocks. A Trailing Stop Order is a protective order designed to get us out of the market if the market moves against our position.
Now, let's say in this example we are long McDonald's, and the market has rallied in our favor. We were up to this point, now we might want to protect ourselves. If this market turns around and starts coming against us, and starts to lose money, we might want to get out of the market. The best way to protect ourselves against that is using a trailing stop. The best way to place a trailing stop within Track 'n Trade Stocks is to come up here to the BS button in the right hand corner, click that button, load the cursor with an order, and drag it up and down on the screen.
We can continually move these orders as we place them on the screen. So, I'm going to place this Sell Stop Order just behind this area of support on that green price bar. We're going to sell; I'm going to come in here, and I'm going to sell all 100, because I'm long 100, I'm going to sell 100. You can see over here in the Order Dialogue Box on this second tab, I'm going to Sell 100 on a Stop at the pre-specified price that I dropped that order at, 93.56. I'm going to go ahead and confirm that.
That order is sitting there, just in case the market turns around and comes against us, so we can take our profits. It's going to be a Sell Stop liquidating this long position. I'm going to step the market forward. As that market continues to rally in our favor, we have the ability of moving this stop to a new location, locking in additional profits. So, we just click on it, drag it up to the new location, release the mouse button. We have now moved that stop to a new location, to lock in additional profits.
As that market continues to rally, we can continue to move it up, once again, if we would like. Or we can leave it where it's at; giving the market a little bit more room to breathe. But as this market goes up, and then comes back against our position, you can see that the order, or the stop order was hit and triggered. You can see that it was closed out of our position. You look down here in our Accounting Package, we can see our Closed Positions, where we sold out 100 shares of McDonald's Stock on a Stop, or on a Trailing Stop within Track 'n Trade Stocks.