This is something I want to do and sometimes I succeed but most of the time i'm not confident enough to do it. I generally trade support and resistance, and my general rules are that I like to go for a 1:2 Risk/Reward trade setup, but I feel like having a trailing stop can maximize profits. The only thing with this though is knowing when to activate the trailing stop. I have drawn a diagram below to describe what I mean.
At the start of the trade you would have met your target of 20 pips with a risk of 10 pips, but due to activating the trailing stop I only got 10 pip profit from the trade. Would this seem like a reasonable thing to do?
At the start of the trade you would have met your target of 20 pips with a risk of 10 pips, but due to activating the trailing stop I only got 10 pip profit from the trade. Would this seem like a reasonable thing to do?