Posts  / #POST-228683
REDDIT

Trailing Stop Sell: When to use it?

M
May 30, 2026 · 02:11

I'm trying to understand the right strategy for setting sells with Trailing Stop. Since taxes would be owed on any sales, I'm currently not setting this for any stock I prefer to hold longer term, or ETFs, since I don't want to be in a situation where they go down enough to trigger, then I pay taxes, only to buy them back and not much lower than what they sold for.

However other things like MU or SPCE seem like good candidates, since I don't expect to hold them for that long and they seem like the kind of things that could one day just drop like a stone and never recover, at least not for a while -- or drop a LOT before they recover.

Any common wisdom on this strategy?

I'm not looking for advice on what \*I\* should do, just wondering if there is common wisdom.