If you think a stock will go up, and want to maximum while it is climbing

Question

Say I bought a stock at $100.
Now in the morning I am expecting the stop to increase in value.
If I say sell at $102, it will sell as it spikes.
Now say it ends up climbing to $105 before declining, I sold at $102 but lost the potential of $3 as I sold "early".
Is there a way to say:

if it reaches $102
now its at $102, if it drops by .25 sell at $101.75
if it increases in value, moving the .25 cent sliding

So say it goes to $103.5, but then suddenly drops to $103.24 then it should sell.
Is this possible to setup in my trading platform?

Bob Baerker · Answer

A trailing stop order will achieve this.  For a long position, it sets the stop price at a fixed amount below the market price. If the market price rises, the stop loss price rises by same amount but if the stock price falls, the stop loss price remains the same.
For example, you buy XYZ at $20 and you set the stop at 25 cents. If the price drops to $19.75, it triggers a sell order.
Suppose XYZ rises to $22 without dropping 25 cents.  At $22, the stop is $21.75.  If XYZ then drops to $21.75, it triggers a sell order.
The trailing stop can be placed  at a defined percentage or dollar amount away from a security's current market price.
There are basic order types as well as more complex orders.  Not  all brokers offer the complex orders.

If you think a stock will go up, and want to maximum while it is climbing

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