Hi team,
Please can someone help me on to know how to set or calculate stop loss and take profit? Still finding it difficult to get hold. Thanks
Here is just an example on a daily chart for a one to one trade.
The stop loss should be set at the last point of support for a long position and at the last point of resistance for a short trade. These stop losses are flexable and as the trade moves in your favour keep adjusting your stop loss to the next level of support or resistance.
Take profit in this case has been set at the last major level of resistance. However you need to watch price action at that level as the trade could continue up.
There is a lot to trading including profit and loss strategy and this is just a simple guide to start with. This is a daily chart but the principle applies to what ever timeframe you use.
Cheers
Blackduck
the Babypips course discusses this. The entire course is amazing, and extremely helpful when you’re first starting out as a newbie
Hi jconnect,
I’ll assume you’re new to trading. The first step would be to complete the babypips course.
Secondly, to experiment on a demo account.
So,
To set stop loss will depend on your broker or platform for that, you can call them or check their website: should be in there.
Set and calculate take profit: is same as above to set but to calculate take profit depends on your strategy and what your risk to reward is. If its 1:1 then take profit is same as stop loss distance otherwise if its 1:2 or higher then it’s that multiple of where your stop loss is.
What exactly do you mean calculate your stop loss, do you mean where you should put it or how much should you risk?