How to set profit target and stop loss

Mark you are a wonderful son. God will Bless all your trades .Entering and exiting.
You are a a wonderful human all around. THANK YOU.

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There are many ways most of the traders look at Support and Resistance levels. Some use Pivot points, some employ Fibonacci and some use Moving average based Stop Loss or Target levels.

Well explained thank you sir may god give you strength and more blessings

Im back. Mate
I did my homework thanks to you.

I decided to follow USDCAD

Entry price= 1.28431
Since I was long

Take profit= 1.28494
Stop loss= 1.28412
Lot=0.04
I made 1.96usd but I’m the one who decided to close the trade because of the fear.
So my question is should i have let the trade carry on or I did the right thing by closing it??
Or after modify i just have to go to the gym, the trade will automatically close itself after it has hit target and loss??

Hi

I struggled as well until I played around on a spreadsheet and I figured the following: 1% of $90,66 is $0.9066. If using lot size 0.05, 0.9066/0.05/10=1.8132 pips!
However if you use 0.01 lot, 0.9066/0.01/10=9.066 pips. Personally I never use less than 10 pips on stop loss. Am also new in Forex and use 20 or 30 pip stop loss and 0.01 lots. I aim for 30 to 50 pip profit

Trades close automatically after hitting TP or SL. However you must develop a trading system. Entry at 1.2843 and TP at 1.2849 gives you 6 pips. SL at 1.2841 is 2 pips. That sounds like gambling. Please develop a system while trading a Demo account. If you don’t do that it won’t be long before you blow your account. I blew mine from $250 to $20 in a few minutes because I didn’t know what I was doing. Now am back on Demo and paper trading

Hi mate, let me just make a quick comment on that, since you are new.
Even though i understand what you mean, you should know… where you put your Stops is not determined by a number like "i put mine at 30 or 50 pips"etc

it’s determined by the instrument you use
Example
if put a stop at 30 pips on US2000 it would probably be ok
if i did the same thing on EUR USD it’d probably get taken out too frequently and a stop of 60-70 pips may
be more appropriate

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Depending on the timescale you trade and your intentions, a “catastrophic stop loss” of 400 pips may be more appropriate :slight_smile:

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Thats awesome

RE this

you can simply things for yourself by doing this
Entry Price = 1.2843
Take Profit = 1.2849
Stop Loss = 1.2841
No one cares about the last digit

other than than
GOOD WORK MATE

Now. THE RIGHT THING is to end up in profit or to learn
if you did either one, you did the right thing

it’s normal in the beginning to get jittery and close trades manually
but you’ll get over it

Keep going

Ohh. here we go again… hehe
You’re being a comedian huh… hehe

i think you’ve missed what i tried to say again
you seem to have a habit of taking things out of context

of course it depends on your strategy , me and you know this, HE DOESN’T
so my comment is directed to a newbie, not to someone like you who knows better ok

and therefore the WAY I SAY IT is catered to him
if it was you, it’d be a different comment

Hope that clears it up

Mate, i’m getting this funny feeling that you want to tell me that i’m a firetrucking idiot
(as is evident by your comments) hehe

Mate, if you feel that way and that’s your personal opinion SAY IT, I won’t get offended,
but DO ME A FAVOUR, and tell me why, have that courtesy

Feel free, as opposed to throwing little comments around that can last forever and just create bad blood.
come out with it, feel free ok

What happens on Babypips … STAYS ON BABYPIPS hehe

Martin, I have made a comment, which you seem to want to take personally.

My reasoning is ;

EURUSD Has been range trading between about 1.1550 and 1.1950 for a good many weeks now.

A 60-70 pip stop loss is well within the daily range on this instrument, whereas a 400 pip stop loss in either direction at any time, puts you outside that range. If your SL gets hit, you know you were wrong.

Whereas with a 60-70 pip stop, there is every chance that the SL will get hit and then the direction reverse to show that your failed bet would have been successful. It happens frequently. But every time you get a SL hit, it Locks IN a loss of cash to your account. That means you willl have to get a good successdul bet, just to recover some of what has been taken away, when you could have had 2 profitable bets.

Over the past weeks almost any bet within the range 1.1630 to 1.1895 would eventually have made a profit. But how mant have lost money because their stops got hit ?

I am not “being a comedian” here and I am beginning to get the iimpression that every time I disagree with something you have said - you are taking it as a personal attack. I cannot control how you choose to feel about my comments - and would not wish to. That is your choice, but please stop implying that I am “picking on you” for some reason.

[Edit a 400 pip SL at $0.10 puts you at risk of $40 - and will only get a suprise hit in a “catastrophic situation” on this particular pair in current circumstances. ]

@Falstaff

first of all before you read this… do me a favour,

  1. calm down and read it with a Neutral frame of mind… ok

NOW, I’M GOING TO BE 100% HONEST WITH YOU… OK
I’m going to sort this out right now

this is a big misunderstanding, and i know how it can be sorted,

Look…

No… When i said to you [quote=“Falstaff, post:31, topic:125116”]
Ohh. here we go again… hehe
You’re being a comedian huh… hehe
[/quote]

What i i was trying to do was lighten the situation
that’s why i put the “hehe” in their

Now. PRIOR TO THAT COMMENT
and YOU KNOW this is a fact
You made a low blow and a comment about my wife
Now,… i didn’t take that too deeply to heart, but i know why you said it, and so do you

Now, let’s be frank
HAD YOU NOT HAVE SAID IT
i would not have taken this comment the wrong way

can we agree that Family should be kept out of the discussion.

Now let me address this

thank you for providing reason, I GENUINELY appreciate it… ok
and it’s good to see that IT’S MY FAULT FOR MISUNDERSTANDING YOU

but i was confused because of that previous comment that involved my wife
and also the fact that you just came out at me for giving that bloke advice about his son

can you see how these things connect , and can you see how i would make a few assumptions and be a little cautious with you

now let me address this

Mate, HONESTLY AND SINCERELY
No… I don’t take it personally if you disagree with me

Now let me say this as well,
i notice a lot of people ASSUME THAT I WOULD, sure, i get that
but i’m not , not just for a mere disagreement… NO WAY so… that’s sorted …right
FEEL FREE TO DISAGREE WITH ME (Just don’t be rude and insulting) but , disagree all you like.
i don’t take it as a personal attack.

You cannot control my feelings, thats true THAT’S WHY I’M TELLING YOU HOW I FEEL
that being… I don’t take disagreement personally like other people. ok
so that’s sorted

now as for PICKING ON ME … FOR SOME REASON
mate, … hehe
Really ?? some reason

ok, Every one is allowed to explain themselves and defend themselves

do me a favour
Explain the Attack on me regarding you mentioning my wife and that you believe she had a job that was NOT THAT IMPORTANT

How would you have taken that ? by the way
if i said something about your Wife or Mother or sister

so… it’s not for SOME REASON
there was a GOOD REASON

but, this can be sorted very easily

AS IT STANDS NOW

  1. I Respect your willingness to work it out
  2. I’m not angry
  3. I accept that in this post you have brought it to my attention that i have misunderstood you and your intentions.
    i therefore apologize for calling you a comedian, although my comment was not intented to offend you… IT DID.
    for that i apologize

but i have also explained to you WHY IT WAS DONE… right

  1. Mate, i can forgive and move on… No Problem, I just need to know we are going to be cool and stick to the topics

  2. I’m also giving you a heads up, FEEL FREE TO DISAGREE WITH ME WITHOUT ANY FEAR OF ANY ATTACKS

but BE CLEAR ON THIS…
When you disagree Disagree
Don’t Disagree and throw around Low blows, because we all know what it means ok

THAT’S ALL I ASK MATE
TREAT ME WITH RESPECT, I’LL TREAT YOU WITH RESPECT

IS THAT COOL

@anon81929759 - Martin, You recommended the OP to uses 60-70 pip stop - loss on the EURUSD pair, after (s)he asked for advice…

I disagreed and you said I was “being a comedian”.

I then gave my reasoning, why I believed your advice to be wrong and you produced this “red herring post”.

I don’t think you and I could ever be “mates” in the real world, so I think it best we are just businesslike in our dealings with each other.

[Edit - to correct two spelling typos]

No… i didn’t RECOMMEND.
that was a Hypothetical scenario that was supposed to illustrate that MORE PIPS would have been better.
it’s not like i said
"I Martin Kuliza hereby declare that the OP SHOULD DEFINITELY use Precisely between 60 - 70 pips"
that’s not what i said or meant.

you took my comment with too much weight

I understand
and i didn’t give a RED HERRING of a post, i gave MY REASONING AND EXPLANATION, Just like you did

Why is your reasoning, called Reasoning
and my reasoning is called a Red Herring

I know and i’m not trying to be mates with you, I’m just trying to get along
and i already said all this Regarding being professional and businesslike

but, is it BUSINESSLIKE to bring someone’s family into the discussion

Example, if me an you worked in an office in Accounts or something similiar
and you made a comment about my wife or family.

isn’t it reasonable to think that…
a) Friction would be created in the workplace
b) Eventually you’d be called to the manager’s office
c) You’d be re - educated and told not to refer to the family members of other staff and that your comment was innappropriate and not relevant in the workplace

THAT’S CORRECT… RIGHT ?
so. i agree
let’s be businesslike
but you were not being BusinessLike

businesslike means - focus on Forex, you are free to disagree with me and i won’t be bothered about it.
but Family doesn’t come into it, Nor should Rudeness

so… I AGREE TO THOSE TERMS
let’s be Business like
you wanna do that ?

Goodnight Martin . :slight_smile:

Goodnight Falstaff …

Thank you martin.
I have another question let me say I enter a trade…
Audusd
Ask price 0.7638
Bid price 0.7643
Since I’m long I’ll be using ask price as an entry point???
My balance is 100usd I’ll be risking 1% which is 1usd

Pip calculation
0.7643-0.7638 =5
Now to check cost per pip
1÷5=0.2
Which means is 2usd cost per pip???
Let assume I’ll be using micro lots, how do I convert 2usd to lot size 0.00???

Since cost per pip is 2$ which means if a trade goes my way I’ll reward myself with 2$ profit???

@Gabriel1

ok so

Account Balance = $100
1% Risk of Account Balance = $1

AUDUSD
LONG TRADE
Pips Spread = 5 Pips
Entry = 0.7638

QUESTION : Where are you putting your Take Profit ?
QUESTON : Where are you putting your Stop Loss ?

to answer your question

ok, i’ts like this

0.01 Lots = 10 cents per pip
0.1 Lots = $1 Per Pip
1.0 Lots = $10 Per Pip

therefore $2 Per pip is merely $1 Per pip (0.1Lots) x 2 hence 0.2 Lots

but that aside
this doesn’t make sense

Because Your risk is 1% right (Aka which is $1) total for the trade
yet you are trading at $2 Per pip

HEADS UP MATE

since you only have $100 in your account and you are trading at $2 per pip
let’s say you put your Stop Loss 50 Pips from the entry and your stop loss gets hit

YOU LOSE $50 (50% of your account IN 1 TRADE)…Not Smart

and it’s gonna be more
because you have not calculated that NOMINAL REQUIRED MARGIN for the trade

so Let’s say on AUDUSD the Margin is like approx $100 THIS MEANS TO START THE TRADE you need to invest $100
You’d be stuffed

let’s say for example that the NOMINAL MARGIN is $50

Now… YOU THINK you are risking 1% of $100 right… WRONG
After your intial investment into the trade, you are only left with $50, hence you need to calculate 1% of $50
so it’s actually 50 cents at risk, Not $1

and then you have to factor in your account Leverage

Mate, BOTTOM LINE IS… Starting with $100 is not going to work, ok

but as for calculating the Lot size
THEORETICALLY, your answer is 0.2 Lots = $2 Per pip

Hope this helps

It sounds to me that you are not actually “Trading” in the way we normally “Do it”

Are you betting "Binary Options " ?

If you are, Then you will not bank “$2” for a “Win” - In my “broker” they pay a lesser % for a “Win” than they take for a “Lose” so you would “Win” something like $1.60 or “Lose” $2 and I’m not sure the “Spreads” work the same way on "Binary options " either. - I tried them on Demo - and I don’t like the fact that the price has to be +/- at a certain “Time” either.

Trade Demo until you “Get the feels” of what you are doing - It will likely save you at least $100 :sunglasses:

@Gabriel1 That’s a good point that @Falstaff is making.
Please note : i am assuming that you are talking about Trading Forex,
I was not assuming that you were Trading Binary Options, that’s a different kettle of fish

so… Which are you trading, Forex or Binary or something else ?