Hi there
Since I’m a newbie in the fx business I found it very confusing to set my t\p and s\p target.
Let me say I enter a trade [email protected]
Account size= 90.66 USD
Risk percentage= 1%
Lots size= 0.05
How do i modify my order using mt4
Thanks mates
You are doing it backwards.
Your stop loss is set at the level that tells you that you are wrong about what the market is going to do. Then you use your stop loss, account size, and risk profile to determine the size of your position, not the other way around.
This is why setting stop losses is something of an art. The wider your stop, the smaller your position size for the same risk, the lower your profits if the trade works out. But you are less likely to get stopped out.
The shorter your stop, the larger your position size for the same risk, the higher your profits if the trade works out. But you are more likely to get stopped out.
Did you complete BabyPips School already? If not, then use it! It will help you to learn all of the basic info about Forex trading including your problem! It’s a proper guideline for the new Forex traders!
for example, if you are bullish, you should set a profit target around the next resistance level, stop loss - below the support level
Thank you I used to enter a trade without stop loss, sometimes the trade would go my way but at the end resulting in smaller profit. again thanks homie
Hi Gabrile1
in the nicest way i can say this…
2. I’m probably gonna cop heat from the forum for showing you this, because EVERYONE IS EXPECTED TO LEARN THE BASICS ON THEIR OWN (that’s babypips is for, after all)
There are basically 2 ways to put down and edit a trade
here is a GBPUSD H1 chart (Demo Account) $10,000 Balance that i created to show you this.
Blue Candles are Bulls (UP)
White Candles are BEARS (DOWN)
Now… Read what @Drekieyja has told you
now. in light of that
Before you even place a trade
before you even decide your entry pirce, or Account Size you need to know
Your Account Balance (in my case, on my chart it’s $10,000)
You need to know HOW MUCH YOU WANT TO RISK
Meaning, IF YOU LOSE, How much are you prepared to lose ?
I’ll let you work out the math,
i suggest you stick to 1% or lower to begin with
I’m here to address this question
before we can modify and order
an order has to be placed
let me now show you my hypothetical trade setup
YOU SHOULD DO THIS BEFORE YOU PLACE A TRADE
I like to use
YELLOW LINE - Entry Price
RED LINE - Stop Loss
BLUE LINE - Take Profit
let’s assume I’M GOING LONG (Buying)
STEP 1. My Plan is to do this
THE PRICES ARE AS FOLLOWS
TAKE PROFIT - 1.3457
ENTRY - 1.3377
STOP LOSS - 1.3332
This means
I enter at 1.3377
i plan to take profit (if everything goes to plan) at 1.3457 (I WANT YOU TO CALCULATE HOW MANY PIPS THIS IS)
NOW. IF IT ALL GOES WRONG and it goes the other way
I HAVE TO PROTECT MYSELF WITH A STOP LOSS
so my stop loss is at 1.3332 (I WANT YOU TO CALCULATE HOW MANY PIPS THIS IS)
NEXT : Planning it like this, IS NOT ENOUGH
you can’t just choose a Random LOT SIZE - that’s stupid
you have to calculate HOW MUCH RISK you will take on
READ THIS CAREFULLY ************ YOUR STOP LOSS IS YOUR RISK******************
Calculate 1% of $10,000 - THIS IS YOUR TOTAL RISK FOR THE TRADE
NOW… Take that dollar amount $$ and divide it by the AMOUNT OF PIPS FROM YOUR ENTRY TO STOP LOSS
this will give you you COST PER PIP
now. CONVERT THE COST PER PIP TO LOT SIZES (this is your homework, i can’t spoon feed you everything)- take it as feedback, not as an insult … ok
so let me place that trade now
the trade is now ON
but there is no stop loss or Take Profit
so LET’S SET THAT NOW
HERE IS YOUR QUESTION
Step 1. Make sure you can see the trade by selecting the TRADE tab in the TERMINAL
Step 2.
right click anywhere on the trade in the terminal and you’ll see this
Step 3. it should now be obvious that you should select MODIFY OR DELETE ORDER
you will then see this screen
Step 4. now just pop in the prices
so our stop loss was 1.3332
and our Take Profit was 1.3457
as follows :
now PRESS THE BIG BLUE LINE TO COMPLETE THE ORDER MODIFICATION
YOU WILL NOW SEE
this is how you modify and order
I hope you now appreciate this level of basic knowledge
because again ,it’s likely i’m going to cop crap for doing this from the forum
so DO ME A FAVOUR AND DO YOUR HOMEWORK OK
so at least i can say that after showing you this you at least figured out on your
oh and again
I STRONGLY SUGGEST YOU ONLY DO THIS ON DEMO, because if i have to show you with pictures
you are not ready to trade
that being said
I hope this helps
Have a nice day
Gabriel1
AS FURTHER HOMEWORK
Tell me what’s wrong with the trade that i put down
I have purposely thrown in something for you to think about
and finding the answer to this will save you a lot of money
LET ME KNOW WHAT YOU THINK ?
FYI : here is the profit that i made
Starting with $10,000
i made this profit in a matter of 20 minutes
WHAT’S WRONG HERE ?
here is the TRADE HISTORY of 1 Trade for you to analyze
Best explained impossible! Excellent your analysis. He helped me a lot too. It is always advisable to close sales at the end of the day. Do not let the market surprise you.
Thanks I’m not offended I have to learn from the best that’s the reason why I joined the forum
Coming to your homework let me elaborate it
I Googled buy limit, sell limit, buy stop, sell stop
Now I know the meaning of them how the works.
Coming to the risk percentage that department I’m covered thanks to the babypips, position size calculator. Pip value calculator etc
With 10 000usd
1%risk it means you will be risking 100usd
Teach me how to fish
I think is because of many trades opened at the same time
NB
Setting s\l and t\p requires any calculations or you just guess and enter numbers because what I know is that the profit target is set above the entry price and stop loss below
Because here your entry price is 1.3377
S\L @ 1.3332
T\P@ 1.3457
Did you guess or you made calculations if you did which method you used to allocate both your t\p and s\l
It seems I’m asking for a lot truth should be told I would also skip my accounting class hope you understand me
Excellent…
Now you can calculate how to set up a trade and put a pending order down
so that it executes where you want it to be.
as for
$10,000 USD
yes
1% of that amount (as your risk means) YOU WILL BE RISKING A MAX OF $100 USD
GOOD…
AND YOU SAID
OK. LET ME TEACH YOU TO FISH
LET’S SEE IF YOU CAN ACTUALLY USE YOUR TOOLS PRACTICALLY
so…
i Made $541.37 , Now what’s wrong with that trade
CAN YOU SEE THE PROBLEM ?
Working this out will teach you to fish
No I can’t see the problem. 
ok mate
THIS IS WHAT YOU KNOW SO FAR
ACCOUNT BALANCE = $10,000
RISK = 1% of Account Balance
you also know that my trade plan (that i purposely created to be stupid) was as follows :
You also said that you know how much $$$ you are prepared to lose aka 1%
we calculate it like this…
0.01 (1%) x 10,000 = $100
VERY GOOD,
so you know YOU MUST NOT LOSE MORE THAN $100 - NO MATTER WHAT YOU DO , PER TRADE
HERE IS WHAT YOU DON’T KNOW
and what you have missed
RISK MEANS - Where have you Put your Stop Loss
RISK IS STOP LOSS
REWARD IS TAKE PROFIT
now there are more things to consider in risk, but let’s just stick to saying that
The Further you put your stop loss away from your entry
THE MORE RISK YOU HAVE
Meaning… the More money you’ll lose
SO LET’S CALCULATE THE AMOUNT OF PIPS FROM MY ENTRY TO MY STOP LOSS
ENTRY = 1.3377
STOP LOSS = 1.3332
Since this is a BUY
it’s calculated like this 3377-3332
of if you like, you can just do 77-32 (you get the same result)
ANSWER = 45 PIP RISK
NEXT PROBLEM
a pip means nothing unless you know how much 1 Pip is worth
LOOK AT MY LOT SIZE FOR GODS SAKE
I Told you that i made $541.37
Doesn’t that seem like a lot ?
Now, this is a trick question, because if you say YES
i could say, it’s not because if my risk is managed and my lot size is appropriate to my balance, then the risk is ok
if you say NO, then i would raise an eyebrow as to why you said that
the correct answer is NOT NECESSARILY
let’s move to the trade history of that 1 trade
let’s put aside the $21.00 commission
FOCUS ON THE LOT SIZE…3.0 LOTS
NOW THAT’S $30 PER PIP
i purposely put this in there to make it stick out like a sore thumb on top of sore thumb
YOU DIDN’T PICK UP ON IT
THIS TELLS ME
IF YOU TRADE LIVE, YOU ARE FIRETRUCKED (if you get my meaning)
let’s Look at how much you would lose
so $30 Per Pips x 45 Pips (Stop Loss) = $1,350
now remember on $10,000, IF WE RISK NO MORE THAN 1%, it means MAX RISK = $100
yet , IN THIS SCENARIO, I would have just lost $1,350 (10x more) which is a bit more than 10% of your entire account
WHICH THEN MEANS THIS…
IF IT’S 10%
and your entire account is 100%
YOU CAN ONLY STUFF UP 10 TIMES BEFORE YOUR ACCOUNT IS BLOW
10 TIMES… OK
I’ll say it again… ONLY 10 TIMES
10% doesn’t sound like much to newbies, but regardless of whether you start with $100 $10k , $100k is irrelevant
10% is a lot
now, let’s see what i SHOULD HAVE TRADED IN LOTS TO BE SAFE
so 1% Risk = $100
SO OVER 45 pips
YOU DO THIS CALCULATION
100 / 45 = 2.22
SO YOU ARE ONLY ALLOWED TO RISK $2.22 PER PIP
so you need to round this down to $2 per pip which = LOTS SIZE OF 0.2 Lots
BUT WAIT THERE’S MORE
NEXT TRAP YOU’LL FALL INTO
Remember how i said PLAN YOUR TRADE and stick to it
SCENARIO
Let’s say you have $10k in your account
you plan your entry
you put your Stop Loss 45 Pips away
YOUR LOT SIZE = 0.2 lots
ALL GOOD
your risk is managed at 1% of your total capital
THEN THIS HAPPENS
The trade goes the wrong way - You are still ok
You’ve researched the trade
YOU ARE CERTAIN IT’S GONNA COME BACK UP TO THE TAKE PROFIT
****************** READ THIS VERY CAREFULLY ***************************************
Now Because you are sure , YOU MOVE YOUR STOP LOSS DOWN BY ANOTHER 10 - 15 PIPS
YOU THINK IT’LL B OK
but it won’t
because something like this will probably happen
either
2 Your stop loss gets hits and you end up losing the following
$2 per pip x 60 pips = $120 instead of $100
it might not seem like a lot, BUT IT IS
or
YOU ARE GOING TO GET TO A POINT WHERE ONLY 1 OF 2 THINGS HAPPEN
at this point
IT WILL HIT YOUR STOP LOSS
it will look like this
$2 per pip x 90 pips = $180 LOSS
you just lost 80% More than you planned to lose
before too long, you lose your entire account
shortly after that , you’ll get depressed
you’ll bottle up in inside and won’t tell anyone
IT’S NOT A GOOD THING
THE LESSON IS THIS
the idea is this
If you don’t move the Stop Loss and You Win - YOU DID THE RIGHT THING - LEARN FROM IT… REWARD YOURSELF.
if you don’t move the stop loss and YOU LOSE - ACCEPT YOUR STUFF UP - LEARN FROM IT… do not get depressed or sad
TRADING IS MATHEMATICS AND STATISTICS… ok
so Remember
DO THIS
TOTAL RISK IN $$$ / (Divided by) AMOUNT OF PIPS for the trade = MAX AMOUNT OF $$ PER TRADE
0.01 Lots = 10 cents per pip
0.1 Lots = $1 per pip
1.0 Lot = $10 Per pip
when you know all this
you can place a MANAGED TRADE where your risk is managed
BUT REMEMBER
It only remains managed if YOU DO NOT MOVE YOUR STOP LOSS
DO YOU SEE THE PROBLEM WITH MY TRADE NOW ???
Hope i have taught you something here
I’ve got more homework for you
I want you to go open a demo account
Account Balance $1,000
LEVERAGE 1:500 or higher
Trade with no less than 0.1 lots $1 per pip
Try to make $50 per day
now open another demo, same thing
but AT THE SAME TIME
trade with no less than 0.5 lots $5 per pip
Try to make $50 per day
SEE WHAT HAPPENS
LOL
YOU’LL SEE, don’t worry
then come back here and tell me i was right… ok
see you soon
Mmmh you covered everything its now up to me to go back into my demo and do the dirty work. I guess I’ll come back as soldier stronger, smarter and faster.
What more should I ask for??
My task is to go and imply what I have been taught.
Thank you for your support I guess if I need anything I’ll hala @ you homie 
Notedstrong text
No… Your task is to go and APPLY what you have been taught
by saying this i am IMPLYING that you have used the wrong word
see the difference
that aside
Yes, you will come back stronger and smarter Hopefully
Manage your risk my friend, don’t get caught with your pants down
and yes if you have questions come back and ask
BE COOL
Shot mate.
I’m kinda stuck in the bush
I have 2 questions
38-14=24 pip
But immediately after I entered a trade the bid & ask tend to change yet I haven’t yet decided to go long and short
Bid price
0.8804
Ask price
0.8807
Which is 3pip
So now my confusion is which pip should I use??
hi mate,
i want to clarify something here
you said YOU ENTERED THE TRADE
then you said, YOU HADN’T DECIDED TO GO LONG OR SHORT YET
MY QUESTION IS THIS…
if you didn’t go LONG or SHORT how did you place the trade ?
When you place a trade (A Criteria is, YOU MUST go either Long or Short)
if you don’t , the trade won’t start
if you are selecting Buy or sell, you are still going long or short
if you are selecting BID or ASK, you are still going long or short
it can’t be any other way
i think maybe you are clicking on Bid or Ask but you don’t realize that you are actually making a Long or Short Decision.
Prices can change dramatically depending on volatility, on the broker , Market conditions etc
24 pips is a big spread, no question about it
3 pips is relatively normal at most times[quote=“Gabriel1, post:17, topic:125116”]
So now my confusion is which pip should I use??
[/quote]
this is a weird question
There is only 1 type of pip
You don’t use them,
THEY TELL YOU THE CURRENT PRICE
perhaps this will help
now if i was to select BUY MARKET the price would be 1.17483
which is the same as clicking BUY at the top
i don’t know if this helps clear things up or not
RE Modifying an order
if the order refuses to modify it means THE PARAMETERS ARE WRONG OR THE BROKER DOESN’T ALLOW IT
example
if you are BUYING but your TAKE PROFIT is BELOW your entry point - it doesn’t make sense, so the platform doesn’t allow it
if you are SELLING and your T/P is Above the entry, same thing
now lastly
if your broker has a restriction like, it has to go +10 pips before you can put a stop loss
then that would happen as well if you only were +3 pips in profit
does this help ?
EDIT: as per what @Drekieyja reminded me, i made a stupid mistake because i was doing too many things at once while reading the post
it’s important to make a distinction between PIPS and POINTS
you have 2.4 pips, not 24
Look at my chart My Sell is 1.1748 then 2 (is small)
and my Buy is 1.1748 then 3 (is small)
so the calculation is (IN PIPS) 1.1748*1.1748 = 0 pips
(in POINTS/PIPETTES) It Would be 1.17483 - 1.17482 = 1 point or 0.1 PIPS
Technical point - its 2.4 pips, not 24. Pips are the 4th decimal place (second on Yen pairs). The 5th decimal place are typically refered to as ‘points’ or sometimes as ‘pipettes’.
Well, don’t i feel stupid
i totally missed that
i was doing a few things at once hehe
Yeah, that’s correct
2.4 Pips Not 24
