Definition short - stop - pt 1 - pt 2

Beginner Questions
1

In blogs and forums I regularly see the words :
short - stop - pt 1 - pt 2

What do these technical words stand for? I’ve done the Babypips school, Forex4Noobs, … and I do manage to make some money since last December.
I use resistance lines etc.

Some understanding of these words would however be helpful.

Many thanks

2

Redbird welcome to babypips!!!

Those abbreviations mean;

short = sell
stop = the level in which to close a trade if your trade idea is wrong

pt1 = first profit taking level
pt2 = second profit taking level

In a nutshell if you are loking at for example pick of the day,

Short EUR/USD at 1.3050, stop at 1.3300, pt1 at 1.2800, pt2 at 1.2550

pipcrawler is suggesting that the eur/usd price might drop lower, so his trade idea is to short or sell (there is a difference but for now assume that short and sell means the same thing)

so he is saying sell at 1.3050 if the price goes up (oposite of what he thinks will happen) then close the trade for a loss at 1.3300 But if he is right and the price goes down than you are looking to close half of your trade at the first profit target which is 1.2800 and then if he is really right then you may let your second half of your position go all the way till it hits the second profit target of 1.2550

so if you lose the trade and you are wrong you will lose 250 pips :frowning:
but if you win you will win 250 to 500 pips :smiley:

hope this helps, john

3

This is just what I needed :slight_smile:

Great!

Thanks John