Which is better? Trailing stop loss or fixed target

Which is better? Trailing stop loss or fixed profit target in the rasio of 1:2.

Could you please elaborate your question a little more?

What does the ratio 1:2 indicate?

Also, if you are placing a Bracket order, then you can have a fixed target as well as a trailing stoploss. I think iā€™m missing something in your question, please elaborate.

Suppose i am buying at 100
Stoploss of 95 and target of 110 is better.
Placing higher target and trailing sl is better way to trade


It all depends on individuals and their trading strategies. It may change for you if you change your strategy/money management style. For fixed target, you can never get the benefit of a stock zooming suddenly beyond your fixed target. I would suggest, trailing SL is a better option if you want your profits to run. You can keep SL around 2X than your trailing SL. So if you keep a SL of say 1%, you can trail it with a 0.5% +ve change.

But no trading plan sticks forever, you yourself have to analyze which option is better for you. Hope this helps.

Chirag Keswani

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