I usually use risk to reward ratio as 1/2, I mean for example I put 30 pips for take profit and 15 pips for stop loss this is called risk to reward 1/2. this is my plan but you may choose another plan like risk to reward ratio as 1/5 or 1/3. it actually depends on your strategy. you may decide to use 1/10 ratio !
Both for me stop loss at 25 points is very small, but I have to put a stop loss order at the 50 points and take profits when they exceed the 30 points, this is the best strategy in my opinion .
yes forex trading is a good way to earn money from the market because the money you will earn is a result of the mental effort you were able to apply to forex market
The perfect stop loss that i personally apply in my trading is mainly based on risk reward ratio. I use 1 : 2, it means that i apply a stop loss of 50 pips and a take profits of 100 pips in every single forex trade i open.
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Originally Posted by Jazpa
How long have you been doing this and how consistent can you say you have been doing this? i would really need to know if you have had any consistency for like 3 months, if you can answer this, i can get you investors who can give you $50,000 to trade.
I think all of it should we use so that we can get the security in every transaction we do,Quote:
Originally Posted by Jazpa
because if I do not use this method then it could be the price changes and I will lose in the end because I do not use stop loss and take profit
I think you use trading patterns have been very good because I also use a pattern like that you use, that puts SL lower than TP because I want a ratio of greater profits and possible losses will be small, but I use TF H1 and in a day I just targeting 10 pips to 15 pips TP and SL for her, and I was also successful in this regard.Quote:
Originally Posted by Jazpa
strategy for placing take profit and stop loss in the market vary depending on individual's trading strategy but the most commonly used pattern is using support and resistance to determine both the take profit and stop loss levels.
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Originally Posted by nbh75
Nice, i like this too. if take profit is 20 pips, then stop loss is 10 pips, but in this kind of trade, you must be very sure of the price you're buying or selling so you don't enter the market at the wrong time which 10 pips stop loss won't protect.
Every successful Forex traders are set up their Take profit and Stop loss point according to, their trading strategy. Your policy is also good but, I always set 15 pips as my Take profit and 50 pips for my Stop loss. Because, price is always ups and down in the Forex market. I am also making successful trades in Forex by this policy.