What’s a good trailing stop loss sell order amount?

The optimal trailing stop-loss sell order amount is not a one-size-fits-all figure and can vary significantly based on individual trading strategies, risk tolerance, and market conditions. However, here are some general guidelines to help determine the right trailing stop-loss sell order amount for you:

1. Consider Your Risk Tolerance: Trailing stop-loss orders are designed to limit potential losses. If you have a low risk tolerance, you might want to set a smaller trailing amount to secure your gains more quickly. Conversely, if you have a higher risk tolerance, you could set a larger trailing amount to allow the price to move more freely in your favor.
2. Evaluate Your Trading Strategy: The trailing stop-loss amount should align with your overall trading strategy. For example, if you are a day trader, you might set a smaller trailing amount to lock in profits from short-term price movements. If you are a long-term investor, a larger trailing amount might be more suitable.
3. Look at the Stock's Volatility: More volatile stocks require tighter trailing stops to prevent sudden price drops from triggering a sale. Less volatile stocks can afford more relaxed trailing stops. Consider the stock's historical volatility and market conditions when setting your trailing stop-loss amount.
4. Test and Adjust: It's important to backtest your trailing stop-loss strategy using historical data to see how it performed in various market conditions. Adjust the trailing amount based on the results of your backtest to find the optimal setting for your strategy.
5. Consider Using a Percentage: Trailing stop-loss orders are often set as a fixed percentage of the original purchase price or the current market price. A common percentage used is 10%, but this can vary. A percentage-based trailing stop-loss can be more flexible than a fixed dollar amount, as it adjusts automatically to price changes.

In conclusion, the good trailing stop-loss sell order amount for you will depend on your individual circumstances and trading approach. It's crucial to determine the right amount through testing and adjustment based on your risk tolerance, trading strategy, and the characteristics of the stock you are trading.