written by reader Trailing Stop Losses

By Anonymous Questions, February 28, 2020

I’ve really enjoyed your Premium service. I’ve cancelled all my other advisory services. While I can’t say I’ve gotten rich following your recommendations, I an CERTAIN I’ve saved a lot of money by not buying.

You’ve mentioned Trailing Stop Losses, advising that you use alerts rather than orders. I think this question would apply to either one.
Fidelity now only allows ”until cancelled” to last for 6 months and I am trying to find a way to protect maximum gains.
I don’t know if I misunderstand the system or if I’m just too stupid to understand the several explanations that I’ve gotten from Fidelity.
Example – I buy a stock at $40 with a 25% TSL. It goes to $60. If it drops to $45 it sells IF that happens within 6 months. But if it drops to $50 at the end of 6 months, I have to place a new TSL order and my TSL resets at $37.50.
Do you know of a service that would keep my TSL at $45?
Thank you.

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March 2, 2020 12:02 am

AQ: You might want to look into TradeStops at TradeSmith.com. I don’t know if you can connect their service (which sends you an alert) with Fidelity (or any other brokerage house), but if I understand their system, your percentage stop will last as long as you keep your subscription current (paid for). You would have to act on the alert by contacting your broker, so might wind up selling at a higher or lower price in a fast-mov ing market, but the percentage would never “expire”, necessitating a “reset” and the ALERT would be sent (to you, but maybe you can get them to notify the broker as well) whenever a stock in your portfolio stock reaches a price 25% (or your selected percentage) lower than the most recent previous high. Disclaimer: My only connection to/with TradeSmith is that I am a relatively new subscriber , but have not yet set up a stop alert request, so cannot even assure you that it works the way I have described. IMVestor

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