My way of placing stop and take profit!

[budado]

It is dependent on yours system that means trading strategy, here you do not mention that your capital.
If your capital is more, you can be possible to earn more.

It does not matter if you have more capital or less capital your SL and TP will always or must be the same. Since each pair currencies has average daily volatility. You can compute your SL and your TP in their. But if you going to trade and have big capital it does not mean that you going to put bigger SL and TP. Even if you change your lot size your SL and TP will always be the same and its only change depends on your strategy and the pair volatility.

[ishvara]

It is the important for everytrader,when and how much use we stop loss.I think it depend on the trader strategy.he/she how much use stop loss.

Yes the stop loss and the take profit that any forex trader can take in their trades would depend on their trading strategy. The scalpers mostly trade without the stop loss because they stay in front of the computer till the end of their trading. The day traders set a few pips like 20 - 50 pips for their stop loss and 40 - 100 pips and their take profits.

[hanna]

It is the important for everytrader,when and how much use we stop loss.I think it depend on the trader strategy.he/she how much use stop loss.

[pickmurari]

Hi everyone, I just want to discuss about how placement of stop in one's trading play an important role in your profitability as a trader. Some traders want tight stop in order to limit their loses, and some newbies position their stop at the wrong place, making it vulnerable of getting hit. Placement of stop should not be looked as negative thing, its our ally in protecting our capital.Setting proper stop in one'strade will give our trade enough room to make it profitable.One technique in stop loss placement I use is the 00 level, most traders view a 00 level as psychological point where most traders, banks and big institutions considers closing or opening a positions. So my advice to newbies, if your stop falls near or at the 00 level don't put it there, chances are it will get hit easily; sofor example your stop falls at 1.2200, place it 1.2190 for buy or 1.2210 for sell positions, the reason for this is to avoid the 00 level that will likely be reached, and I have experienced it a lot before. I use 10 pips allowance to give enough space from spikes, if you can do above 10 pips then its better but not below it.In the opposite place your target at 00 level because it will most likely be hit.

good piece of advice and explained in a easy and understandable way. Example adds value to the explanation. This could give an oversight for people regarding stop, when and when not to apply or trade and proceed.

[anish]

Placing of stop loss and take profit are very important in forex trading and specially for newbies and your strategy seems very good to me . i must try it out in demo account within very short time and then real account .thanks for sharing .

[computers]

Nice tips, especially the one about the psychological level. It is very effective because most traders put their take profits at major levels like 00 and minor psychological levels like 50. This means that they will ensure push the price to reach this level before taking profit. However your take profit and stop loss should naturally border on your entry and risk to reward allowance.

[sapna]

I completely agree with you because stop loss is one of the main elements of a good strategy. Many new bees tend to be setting a very low stop loss which simply leads them to loss most of the times.

[youssef]

Nice tips, especially the one about the psychological level. It is very effective because most traders put their take profits at major levels like 00 and minor psychological levels like 50. This means that they will ensure push the price to reach this level before taking profit. However your take profit and stop loss should naturally border on your entry and risk to reward allowance.

[kajole]

Hi everyone, I just want to discuss about how placement of stop in one's trading play an important role in your profitability as a trader. Some traders want tight stop in order to limit their loses, and some newbies position their stop at the wrong place, making it vulnerable of getting hit. Placement of stop should not be looked as negative thing, its our ally in protecting our capital.Setting proper stop in one'strade will give our trade enough room to make it profitable.One technique in stop loss placement I use is the 00 level, most traders view a 00 level as psychological point where most traders, banks and big institutions considers closing or opening a positions. So my advice to newbies, if your stop falls near or at the 00 level don't put it there, chances are it will get hit easily; sofor example your stop falls at 1.2200, place it 1.2190 for buy or 1.2210 for sell positions, the reason for this is to avoid the 00 level that will likely be reached, and I have experienced it a lot before. I use 10 pips allowance to give enough space from spikes, if you can do above 10 pips then its better but not below it.In the opposite place your target at 00 level because it will most likely be hit.

Nice tips, especially the one about the psychological level. It is very effective because most traders put their take profits at major levels like 00 and minor psychological levels like 50. This means that they will ensure push the price to reach this level before taking profit. However your take profit and stop loss should naturally border on your entry and risk to reward allowance.

[monkedelofi]

Yes, our psychology that we have in forex currency trading can affect us to trade successfully. The placing of stop losses in our trades brings up making of more mistakes if we are taking the wrong trading decisions. We must be careful if we are setting up our TP in our trades.

Yes your system is good. Every time is set my trade with stop lose and take profit. I think it is very good think to set stop lose and take profit. I set my stop lose and take profit with support and resistance level. But most of time is use take profit 50pips and stop lose 30pips it depend on market conditional.