Questions about take-profit and stop-loss: "What is it? How identify them?"- Care about each trader, only professionals and newcomers are taking it in different ways.For the first characteristic of honing its strategy up to the ideal.A second theory involved, the rapid jump from one option to another trade, often with scant regard limiters deal.
Limiting losses and profit
main question that arises from the trader after the opening of the transaction?about how to determine the values of stop orders to:
- profit was the highest;
- get the smallest loss.
Every novice interested concepts take-profit and stop-loss.What are these terms and for what purpose they are used?It stops without which successful trading is not possible.If any transactions are closed automatically, and it happens at a pre-set value prices.
Take Profit - the level of fixing benefits.That is the first analysis method determines the value of the trader, the price of which reaches.And exposes the take profit at obtaining profits from the market.
Stop Loss is intended to limit losses.It is used to maintain capital in an unsuccessful transaction.That is obviously a trader defines the permissible level of losses and puts it on the limiter.
Stop-loss for profit
In every rule there are exceptions, it applies to the "Forex".Stop-loss and take-profit - are the tools from which to always receive the maximum benefit.It's no secret that the most successful transactions are made on the trend reversal.If you see that the direction of movement still persist for some time, then close the warrant impractical.
In this case, you must move the stop-loss trend.The result will be to lock in profits.That is the price in any case will unfold and go down, but the trader will still win.Though not as large as it was planned in the analysis.This method shows how to set a stop-loss and take-profit in order to use them for a profit.
This is not necessarily done by hand.Simply install the existing terminal function trailing stop.If it is an automatic activation of stop-loss following the price.To do this, open the warrant on the right mouse button to open a context menu, then "trailing stop" and find the right value.Most lower the level of those offered by the system - it is 15 points.
margin call as a stop-loss
Merchants with significant experience in the market may be taking an aggressive style of work.As a stop-loss of use margin call.This deal opens with a large lot.
If the price turns in the opposite direction to the planned, the expected large losses.They are limited to margin calls.In the case of the correct forecast earnings of 10-20 points is increased to 6-15% of the deposit.When triggered margin call losses amount to 10-15%.That is why the method does not need to apply for beginners.It is understandable and acceptable for experienced traders engaged in scalping and pipsing.
traders Traders are faced daily with problems:
- price does not reach the limiter profits.
- Trend interrupts him and continues to move (lost profits).
- price often involves stop-loss.
- permanent losses.
That is setting stop-loss and take-profit - is an integral part of the activities of any trader.Marketers must constantly improve their skills by working on correcting these problems and maximize their prevention.
stop-loss and take-profit selected depending on various factors determine the correctness
stops depends on the strategy.But even within a single trading method exhibiting stop-loss and take-profit may vary.Each trader has been the gradual establishment of an acceptable only for his strategy.
Members, first of all, study the fixed stop-loss and take-profit.What it is?In fact, nothing complicated.Limiters are set at a predetermined distance from the sale or purchase price, regardless of the situation and assets.At 100 n. (Take profit), 50 p. (Stop-loss), the aim is to capture part of the movement.This method is not intended to determine the potential of a trend.The method has proved itself in practice to be the most suitable for novice traders.
Guided Fibonacci levels, time zones, round numbers, and other ways you can define the stop-loss and take-profit.What is it, if not properly produced action strategy and knowledge of the market situation?You have to understand that the essence is not in how these values are set.But the proper use of the chosen method.
BACKGROUND minimum (maximum)
If a stop-loss set at the previous minimum or maximum, the aim is to prevent it from being a false positive.It happens that the stop loss is placed at a distance of 50 points (fixed).At the same time he always gets off the price, but then the trend turns and moves back in the direction of the predicted earlier.It turns out that when properly forecast the direction of movement the trader suffers a loss.It's very frustrating, as it would seem, it is not defined take-profit and stop-loss.
"What kind of obstacles, and how to deal with it?"- A question that has always worried traders.The solution is to move all the time for the stop-loss price for a new way of minima and maxima.The result is a closing of the limiters, but in any case in a positive way.
take profit when the rebound and shot
Following the lines of support and resistance, you can successfully open the transaction and take profit to arrange for any of the two ways:
- If prices rebound from the trend lines.When the transaction is opened at fighting off the graph of the level of support, stop-loss is behind it.This helps to reinsure yourself in case of a possible breakthrough price trend line.The same applies to the resistance level.
- the breakdown of the trend lines.If a transaction is opened at a penetration level of support, stop-loss is required to place at the line of resistance, and vice versa.
The convenient trailing stop?
To monitor the market unseparated by moving the stop loss, you can use a trailing stop.Its value remains constant as it is placed at a certain distance from the profit and the price moves according to this indicator.That is, it implies profit-taking by increasing the price by 35 or 50 points.When you turn the chart unequivocally trader remains in profit or break-even deal closes.
Trading on the highly volatile vapors obliged to use an advanced form of trailing stop.In such programs, the value is moved after the passage of the price specified by the trader number of points, for example, every 50.
How to determine the take-profit and stop-loss?
quality of the work depends not only on the right tools, but also the nature of the trader.Therefore, only according to their own preferences need to choose a system that determines the take-profit and stop-loss.What does this mean?Selected limiters are calculated depending on the strategy.This system works all traders differ.
Do not ignore the stop-loss, hoping that will manually close the deal on time.In case increases minus a novice trader can hope to turn the chart or to believe that the use of this order is not required.After the deal closes suddenly, and the price will unfold again in the right direction.After repeated loss of deposit attitudes are changing.And to avoid internal divisions, the stop loss should be used.
How to put a stop loss and take profit, prompt advice:
- limiters should be used always.
- ratio of stop-loss and take-profit to each other should not be less than 1: 2, preferably 1: 3.That is, at the location of a stop-loss at 50 points on the value of the purchase price of take profit should be equal to 100 points at least.
These orders cover the contract after the price reaches a certain level.It does not matter whether the work enabled computer.
There are several ways to determine the stop loss.One of them is to identify the minimum and maximum price changes on the graph.And for this you need to build a trend.For the rising graph opens the transaction for the purchase, and the analysis of the minimum point.In a downtrend should guide highs.Then, if the maximum width of the channel is 30 points, the value of the stop-loss is the same.
can also be guided by the trend lines.In this case, the transaction for the purchase of a stop-loss set at 10 points from the line support.
You can set up stops, depending on the type of currency:
- GBP - is 30-35 n.
- CHF - 30-35 p.
- EUR - 25-30 p.
In this case, take into account the volatility of the currency pairs.It should be based on the daily indicators and place a stop loss order at 30% of this value.If the EUR / JPY volatility is 60 points, the stop-loss of 20 points.This method is suitable for time intervals of at least 4 hours.
If the price is moving in the right direction, then the profits should be recorded.To do this, stop loss order is transferred closer to the current price value.Therefore, the new point of installation in an uptrend, choose the closest to the current price minimum.
Determination Take Profit
greatest value of the function is shown in the cases of instantaneous price touches the proper level.When she is not delayed by this value, but only a one-time affects him, the trader does not physically able to respond.Science is a must master as to put a stop-loss and take-profit - is an art, and the result is really worth the effort.
should always take into account that the profit target to exceed the stop loss of the same transaction.That is the same number of successful and unprofitable orders must make a profit.
Tips for Take Profit:
- best to put profits before the stop the alleged reversal of the trend, using the built in calculating the price channel.
- for upward movement used the opposite approach.It is necessary to set take profit at the indicative maximum before a new back.
- By analogy with the stop-loss profit target can be set based on the volatility of the currency pair.But you need to correctly forecast the trend movement.
How to place an order automatically?
To facilitate the installation indicator stops there.Stop-loss and take-profit determined on the opening system, which significantly facilitates the work.This method is very convenient, especially on specialized sites available for download a lot of free programs.
to put automatic stop-loss and take-profit, can use the advisor.After installing the program, the graph shows two bands: blue (take profit), red (stop-loss).Special settings allow you to make the program to work in accordance with the preferences of the trader.
actually exhibiting stops manually disciplined traders accustomed to systematic work on the basis of earlier designed trading plan.A trader must produce before the opening of the position a thorough analysis of the market situation.
If you learn how to set a stop-loss and take-profit, you can increase the number of winning trades.Proper exposure of stop-loss and take-profit - the key to successful trading.I would like to wish all traders to more orders, closed on the right set take-profit.