2X SL and Buy Long/Sell Short

Beginner Questions
1

Hello,

I had 2 questions I was hoping someone could answer.

1] I read a lot on a certain strategy I am learning that the person says: TP at 2x SL, what does he mean with that exactly? Could someone give an example of this please?

2] What exactly does Buy Long and Sell Short means? Does this mean that your buys are wider then your sells or ?

Thanks in advance,

Best regards, BVdK.

2

Hi.

  1. They are suggesting that you aim for a profit point (TP) that is twice as big as your maximum acceptable loss point (SL)

  2. In essence Buy and Long are 2 ways of saying the same thing, ditto with Sell and Short

Recommend you study at the free school here on BP

3

Hello eddieb,

Thanks for getting back to my question.

1] Could you give an example about this to make it more clear? If e.g. the SL is at 1.22696 and I am going long and TP is at 2x of SL recommended how much would TP be at then?

2] Yes, that is on the schedule.

Regards, BVdK.

4

Hi.

  1. If you Buy at 1.22696 and set your SL at 1.22596 and your TP at 1.22896 that would give a TP at 2 x your SL

HOWEVER I would never do this! Your SL and TP should be set according to what you see on the screen in front of you and whatever your trading system suggests, not on some arbitrary figure you would like it to be

You’ll understand more when youve been thru the school.
You can also read this Newbies Guide To Becoming A Forex Trader

1 Like
5

Hello eddieb,

Thanks a lot for the information.

Regards, BVdK.