How to Use a Trailing Stop

This video is a starter on the trailing stop loss order.  The trailing stop is a very effective means to take advantage of a trending market.  The speaker walks through a live example of the trailing stop in action.  As the stock trends higher, the stop automatically moves higher with the stock by the amount of the trailing amount.  It is important to note that the trailing stop level does not move down when the stock moves down.  Essentially, this type of order is designed to capitalizes on the strength in the market and lock in the profit when the stock inevitably declines.