Hello, I find it very difficult to determine the points of profit-taking and the points of stopping losses … Whoever has a reliable method can guide us to them and good luck!
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Many different methods. But the common thing is stop loss should invalidate your trade plan and take profit should match your risk : reward part of your plan. Popular methods include but not limited to fixed number of pips, multiple of ATR indicator value, certain distance opposite side of support or resistance. And take profit can be similar. But would be on current market side of support or resistance, fixed number of pips, multiple of ATR. What is best? Great question! One would need to test to find out.
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Based on my experience, it could be dependent on the strategy or system you’re following. 
I used to follow the HLHB system which used a 50 pip trailing stop and 200- pip profit target. If you’re interested, you can check it out. 
I think most strategies have this guide. 
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Thank you for the informations guys!
In every strategy, there is an expected number of pips to gain and then there is an accepted number of pips to lose. Based on your risk management, your Stop Loss is how much loss you can afford, and your take profit would depend on how much positive pip your strategy can give you on the average. Do not over stretch your Take Profit, use the Trailing stop as well.
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Hello , I think weekly high low and multiple of ATR can be used as stop loss and also depend upon how long you want hold your positions .
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Whatever price you identify for a SL, and using whatever method, double-check it meets its purpose. So, for a long, the entry price is a level from which you believe price will rise and you are more than 50% confident in this from your TA / FA. It follows that the SL price must be at a level at which you are now less than 50% confident that price will rise (so you are more than 50% confident price will fall). There is no point making a strategy rule that says you must hold a long open if you actually believe price will fall.
Worth also checking that your SL is at the highest possible price when your judgement that prices will more likely rise switches over.
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I love that.
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How to use the ATR trap in setting entry and exit levels!
ATR is useful to set Stop loss either 2x of value for longer term like day and 1 x for hourly trades .
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Take profit and stop loss are of much importance while putting your trades. Stop loss is set on the trade for limiting the losses. It depends on you how much risk you can afford and then set the stop loss accordingly. Take profit is how much positive pip your strategy can give you.
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Thank you! I trade on the daily daily basis, I mean, I leave deals weekly, so I find it difficult to determine profit taking points and stop loss
Assalamualaikum Akhi
Determine your risk profile first. (I highly recommend you risk no more than 0.5% per trade, and no more than 3% exposure of total overall positions)
If you don’t know how to determine TP and SL, it sounds like you don’t have a trading system as that is the most basic anatomy of a trading system.
I highly recommend you to study a trading system that suits your personality and current life routines. And then back test it (It is not logical to backtest a scalping strategy whilst you do not have the luxury of time to be on a trading desk 8-10 hours a day) and try it on demo.
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And peace and mercy of God be upon you. Thank you very much for your response. I would like to say that I have a way of trading, meaning that I rely on fundamental analysis in the daily timeframe and 4 hours more than it is technical, so there is a difficulty in identifying them!
I use 1:2 risk/reward ratio. I set my TP 2* of my SL. This risk ratio help me to survive this market.
Fundamental Analysis & Sentiment Analysis is to determine your daily/weekly/monthly sentiment. i.e which currency pair you want to trade and determine whether to be Bullish or Bearish. You still need a trading system as way to determine your timing of entry, where to take profit, where to put your stop-loss etc etc.
Find a technical trading system that suits you and can tell you when to enter a trade, where to place your TP and your stops ACCORDING to the bias you determined from your fundamental analysis.
It is great that you have the ability to analyse the Fundamental side of things, while most traders don’t even care about it. Look (or create) a trading system that can work together,.
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Thanks for the informations!
Frankly speaking, the most feasible approach of how to use stop-loss and take-profit in Forex is perhaps the most emotionally and technically complicated aspect of Forex trading. The trick is to exit a trade when you have a respectable profit, rather than waiting for the market to come crashing back against you and then exiting out of fear.
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