How to put stop-loss and set take-profit in the trading terminal?
When you open an order in the data entry window for setting a stop loss and take profit, individual fields are highlighted.
When installing them, please note that they should not be less than the spread level. In conditions of high volatility on the instrument, the system may not give short stops or take profit, constantly informing that it is necessary to update prices.
When placing a pending order, the possible entry point into the transaction will differ significantly from the current market price. Accordingly, both stop-loss and take-profit levels must be set taking into account the entry level.
When you right-click on a workspace, the system understands, depending on the place of the click, the area in which you are in relation to the current market price, and offers to place limit orders for sale and purchase.
If you didn’t set it right away or forgot to set the stop loss and take profit levels, you can change the deal at any time. To do this, in the “Trade” tab, you need to select the desired transaction and right-click on it. In the menu that appears, select the “modify or delete order” item.
Then in the order window that appears, you need to add stop loss or take profit levels.
Should I change the levels of stop loss and take profit?
If you are already in a transaction, then it is not recommended to change the exposed loss or profit levels. Moreover, it is disastrous for your deposit, if you have not guessed, and the price goes against your order. So, if you are in a transaction to buy an instrument, and the price goes down, pushing the stop loss level even lower in the hope of a rebound, you are likely to get an even greater loss. In any case, it will already be fortunetelling on the coffee grounds, and not a sober and cold calculation.
If you move the take-profit level towards the price, then you limit your profit and do not let it grow. As a rule, this leads to the presence of many transactions with a small profit and a large loss. At the same time, the total losses overlap the profit, and therefore contribute to the rapid reduction of your deposit.
It is also important to understand that unreasonable desires to move stop loss and take profit are a manifestation of the psychological instability of the trader. A correctly calculated transaction does not require a change in its parameters. Any trader has ever “caught a moose”, this is inevitable. Only the average result of your trade is important. At the same time, one should not set ambitious goals for obtaining hundreds of percent of profit in a short period of time. The pursuit of such a result means the use of high-risk strategies, and hence the high probability of losses, up to the loss of the entire deposit.
To overcome psychological fears, it is better to use reasonable short stops and a reasonable large level of take profit.
When is stop loss and take profit not needed?
Certain Forex trading strategies do not require setting stop-loss and take-profit levels. First of all, when trading on scalping strategies. Since the transactions themselves concluded in the course of such trading are exclusively short-term in nature (sometimes they last several seconds), setting risk and profit levels is simply impossible. However, in this case, it is better to use advisers and indicators to understand the exit points from the transaction. Periods of high volatility, such as periods of the release of important news, should also be avoided.
You must also keep in mind the size of the spread, which may not allow you to set short stops in transactions. In the case of pending orders, the stop and take profit levels can be even further and several times higher than the spread.
There are also trading strategies based on placing opposite orders or negative locks (locking positions). Trading on this strategy requires a good understanding of the market and strong nerves. Many traders believe that a negative lock is the worst thing that can happen to a trader. Therefore, the use of such tactics for beginners is not recommended.
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