Hi there happy new year from here wish each and everyone a blissful successful year.
New year comes with new vibes and vigor every business/venture are always clamouring for profit this is way investors can be able to manage a successful business strategy.
Trading could be much fun and also could be kinda stressful as there are much risk involve.
Trailing Stop Loss is a new trading feature apparently not found in most exchange platform it could actually be a new trading term to some traders as most crypto base exchange do not support it.
Although some exchange would be integration this feature on their platform soon for better profit management.
A trailing stop loss is a modification of a typical stop order that can be set at a defined percentage or any current open trade position amount away from a security's current market price. these modification can be made on traded open position below or above investors/traders current position to set convenient percentage at which a market price will be triggered when there is fluctuation in market price.
Assume you bought a coin at the price of 100 and put the trailing stop loss at 90 (10 points below the buying price).
If the price drops to 90 then your stop loss will be activated and the trade is closed with a 10% loss.
But if the price of the coin increase to 130 then the trailing stop loss automatically shifts to 120 (means 10 points below the current price). If the price drops to 120 then the trade is closed automatically (the 120 trailing stop loss will be activated), If the price continues to increase the trailing stop also increase with it and remains always 10 points below the current price.
Trailing Stop Loss is very important when trading, for instance with the current market liquidation crypto currency today market at rise without proper asset management using stop loss or trailing stop loss a trader could easily loss all their invested/deposited asset it's therefore advisable to always modify trading position when trading
Reference
https://www.investopedia.com/articles/trading/08/trailing-stop-loss.asp