Stop Loss and Target Profit

Hi,

When deciding to place your stop loss or target profit , how do you estimate how much do you set your stop loss or target profit? Example is the ATR is currently 25 pips on the daily chart and you are going long, how do you decide the value of your stop loss ? If I place it 25 pips below my entry, then where do place your target profit ? Would it be also 25 pips ? And If I do that, that risk reward ratio is 1.

If I want my risk reward ration to be 1:2, and the ATR is currently 25 pips on the daily chart, how many pips should I set my stop loss and target profit for a risk reward ratio of 1:2?

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How do you decide where to put your entry?

If for example you want to buy as price breaches the high of yesterday’s price action, you could place your stop-loss around yesterday’s low.

Hi @kumarafaith77

Do you have a trading strategy that you have tested?

This would determined your entry and take profit.

If not, can I ask how do you decide when to enter what’s your trading plan?

It all depends on the situation.
There are no clear rules.
But you have to use it.
You have to use it.

That’s right. A trading strategy determines how serious a trader is about their money. Every trader should have one at their disposal.

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There are no hard and fast rules in the forex market. But just make sure that you choose a strategy in accordance with your trading requirements.

What’s your idea of a trading strategy if I may ask?

I’m a fan of developing my own strategy for most trades. What strategy do you use for trading?

Depends on previous market structure for me which will also help guide me where entry should be. Always know in advance where entry and SL will be. TP for me is more fluid but I set myt targets again based on previous structure.

One that gives me a positive expectancy applying probabilities to increase my odds consistently. Mainly, indicators sequentially meeting conditions with a a discretionary overlay to increase odds further.

I usually go with price action but I have also tried my hands on day trading and range trading. The broker I use (Turnkeyforex) are pretty okay with any strategy so that works for me. Good to know you work on your own strategies.

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