How do you calculate stop loss and take profit targets?

[dead]

i think this ratio is not good.If you win and lose consecutively your net profit will be netural.So what ever you lose should be half of the last trades profit or even loss than that.
so that if you win 2 trades and lose 1 trade you will have some profit with you at last.

our purpose in trading is to maximize profits and suppress the loss conditions that we face so we have the ability to earn greater than the loss proft

[zoomfire]

that is come back to trader opinion, for me risk and reward ratio 1:1 is comfortable. bep if i got profit one time and loss one time.

i think this ratio is not good.If you win and lose consecutively your net profit will be netural.So what ever you lose should be half of the last trades profit or even loss than that.
so that if you win 2 trades and lose 1 trade you will have some profit with you at last.

[pipsdragon]

Yes, while placing stop loss traders should keep in mind the risk and reward ratio. Your risk and reward ration should be at least 1:2 if you can increase this ration much better.

that is come back to trader opinion, for me risk and reward ratio 1:1 is comfortable. bep if i got profit one time and loss one time.

[mayengbam]

Well its entertaining as well as enlightening to read this thread. some of the traders are using random figures for the sl and tp targets and some use calculations to set the targets. i personally also use fibo most of the time to calculate the sl and tp targets and i also occasionally use random targets when i have enough time to spend on trading. but the point is its very important to use these targets in all our positions

[soumen]

main market ke hisab se sl and tp thik karta hoon. par main most of time 30 pips ka target rakhta hoon. aur kabhi kabhi isse thoda kam ya jyada.

[denira]

need is to open a demo account to practice and help us understand the market for free without fear of losing

that's one benefit you do the exercises on a demo account without you afraid to lose and to note also is this good for the beginner

[medhat4forex]

Usually stop loss is calculated as half to take a profit is equal to the proportion of 1: 2
And must know that stop-loss varies from trader to another and varies from time frame to time frame last

[alwi]

Losses are part and parcel of the customs and forex trading. For me, if there is no loss, not the business name. But, we need to know how to control the losses from growing.

[zoomfire]

i use pivot zones or support/resistances to calculate profit and loss levels.
or sometimes i use predefined values to calculate the values.
i use fixed ratio of Profit loss level like 2:1.

[mayengbam]

Mere khayal se stop loss aur take profit ki koi fix value nahi hoti
ye dono cheeze support aur resistance se decide ki jati hai..jaise ki aapki buying deal ka tp uska next resistance ke pas hona chahiey aur uska sl uske next support ke paas
Issi strategy se kafi log market me trade karte hai

agree using support and resistance areas as sl and tp is a good way to trade, in fact there are different methods that people use to set these targets and i this thread is showing me how people are using different techniques to set these sl and tp targets