Online Stock Trading - Managing Online Stock Trading Risk With Position Size: "Using our example above, if the stock goes up $2 to $42, it would be wise to parallel the price move by increasing the stop by $2 to $38. This is what is referred to as "trailing a stop" and the result is you have effectively cut your risk in half. You now have an additional $2000 (keeping within the total portfolio risk limitation) that is available for another purchase."
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