Am trading with a lot size of 0.02 and I want to take my profit at 3 dollars my problem is that I don’t know how to calculate the take profit and I also have no idea about the stop loss either
You should check out the babypips courses
Being precise with advice on this will fail as where you place exit orders will be driven by your strategy.
In principle, if e.g. you’re long -
put your stop where you would not have bought
put your take profit where you would not buy more
Moving stop to break-even is in my opinion a way for people selling poor strategies to hide the losses you;re likely to experience but I accept that some traders do it in a disciplined way and make money.
What you have not mentioned is where you would place a pyramid order. These can be highly rewarding in a trend-following situation (maybe combined with moving stop to entry) but these do not occur often.
Overall, you have to have a strategy before you can know these rules. You cannot accumulate a list of rules and then say that’s my strategy. More study and practice required.
Which of the courses entails learning how to calculate take profit and stop loss
two different subjects;
The take profit is very subjective and I do not see a specific School for that but if you do a google on"babypips take profit" you will get many forums to review.
1 Like
First you need to calculate the value of a pip for the lot size for the currency pair you are trading.
There are many pip value calculators available on the internet.
So if he pip value is 20 cents for a lot size of 0.02, then;
Your TP should be 15 pips away since 15 pips x $0.20 = $3.
If you want to risk $2, then divide this by the pip value of $0.20 and you have a 10 pip stop loss.
I hope this helps.
1 Like