Do y'all use trailing stops and, if so, what % do you use or what calculation do you use to determine a %?

ChatGPT recommends 12-15% trailing stop but that sure is putting up with a shite ton of lost money.

Say I'm up 10% on an ETF with a cost basis of $100/sh currently trading at $110. Chat GPT would have me selling at $98ish. What's wrong with locking in some profit? If it's at $110, set up for a 5% trailing stop which, if it triggers, still locks me in for ~5% gain. I guess I could get burned if it dips that 5% and then quickly rebounds before I can buy back in?

What sorts of strategies do y'all employ?

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Posted by Fat Bastard

2024 NFL pick'em champion

Member since Mar 2009

87989 posts

Posted on 7/7/25 at 2:52 pm to mmmmmbeeer

all depends on what you are trading and what the chart activity looks like.

i do not use some cookie cutter % for futures, stocks and ETFS. it is all different depending on many metrics and variables.

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Posted by PlanoPrivateer

Frisco, TX

Member since Jan 2004

2926 posts

Posted on 7/7/25 at 4:19 pm to mmmmmbeeer

My guideline generally is 10 to 15 %. I usually only use them on stocks I have held long term. The percentage depends on the volatility. I will sometimes ladder specific shares so that my entire holding won't be filled at one time. Sorry I can't help you much. I don't have hard rules.

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Posted by SquatchDawg

Cohutta Wilderness

Member since Sep 2012

18952 posts

Posted on 7/7/25 at 4:39 pm to mmmmmbeeer

I’ve used a 20% trailing stop and if you want to get real cute you can apply volatility or Beta. So a GIS would stop out at a lower % reduction than an NVDA.

I really just eyeball the charts to see if I’m getting in that range vs updating all the time.

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Posted by Upperdecker

St. George, LA

Member since Nov 2014

32649 posts

Posted on 7/7/25 at 5:47 pm to mmmmmbeeer

Larger stop losses for greater risk, smaller for less risk

I prefer to use levels and set stops at the 2nd most recent low. Usually the recent low will be tested in a pattern but the 2nd one will not unless the stock is really changing pattern

Most important thing is to save your original investment once you’re in the money on your trade. After that is up to you

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Posted by RidiculousHype

The Hatch

Member since Sep 2007

10685 posts

Posted on 7/9/25 at 4:24 pm to mmmmmbeeer

quote:
Do y'all use trailing stops and, if so, what % do you use or what calculation do you use to determine a %?

ChatGPT recommends 12-15% trailing stop but that sure is putting up with a shite ton of lost money.

Say I'm up 10% on an ETF with a cost basis of $100/sh currently trading at $110. Chat GPT would have me selling at $98ish. What's wrong with locking in some profit? If it's at $110, set up for a 5% trailing stop which, if it triggers, still locks me in for ~5% gain. I guess I could get burned if it dips that 5% and then quickly rebounds before I can buy back in?

What sorts of strategies do y'all employ?

You're on the right track, maybe more than you realize. Ignore the 4 downvoters.

You're sort of describing cutting losers early and letting winners run , which is what works, but most people can't do. What most people actually do is average down into losers and sell winners early.

A fixed % trailing stop would be considered crude by professionals, but it would generally work fine.

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