Stop loss or Take Profit??

[azharfsd]

Ya stop loss can minimized our loss. However, we should also anticipate when we are gonna take profit. This is something even harder as if we take a profit at a certain level and then you see it goes to the next one where you could have got a better profit surely you will be This is something that we need to master in Forex and if anyone have a better overview how we can manage it efficiently. Please share. Thanks

 

[Kungfupanda]

Sometimes I trade without set the Stop Loss, that's when I believe 90% on my trading strategy. I guess the market will go up or down and what I need is waiting to get profit. Of course, I set the TP before 🙂

 

[PaladinFX]

Ya stop loss can minimized our loss. However, we should also anticipate when we are going to take profit. This is something even harder as if we take a profit at a certain level and then you see it goes to the next one where you could have got a better profit surely you will be 🙁 This is something that we need to master in forex and if anyone have a better overview how we can manage it efficiently. Please share. Thanks

That's what God gave us the trailing stop for. 😀

 

[Maria08]

Here are some methodologies how to set target and stop-loss,
1. Based on strategy
a. No worry about margin call as having enough capital
b. As per strategy suggests target will be at where current trend ends and stop-loss at trend might get reverse.

2. Based on money management
a. Even strategy suggest one SL, but putting different SL to keep loss smaller. May market re-enter as per call and may hit target.
b. Used this methodology to keep in race and cut loss shorter

3. Stop-loss pips = target pips
a. Even opened position based on strategy, luck plays a role here.
b. In long term, might give better results...

4. Stop-loss pips > target pips
a. Having less confident on strategy but more confident on target that is achievable easily
b. Better suits for scalping

5. Stop-loss pips < target pips
a. Having more confident on strategy
b. In long term, might give better results...

 

[Master Forex IB]

Both things are essential to manage in forex trading . If we just stop our loss we cannot grow account.So we need to take profit too. I use both SL and TP in trading, it saves me from greedy trading and limit my loss.

 

[xProphet]

I try to use both but to say i always do would be to "taste a lie". When i do use them, I try to give my stop-loss breathing room; nothing is more frustrating then getting "wicked out" just to have the pair continue to move in your direction.(I try to use an average high-low and set it above or blow it.) However i am a bit more disciplined on "take profit". "There is always going to be more trading opportunities". I set my take profit on either my trading goal's preset or the price movement's "warning" signs.

 

[michael77]

Thee are lots of ways to use those tools such as mechanical ways (Where you do not like to change anything no matter what is the condition of the market) and manual (Where you are allowed to change according to the condition of the market). Those are very helpful tools. But keep it mind that you need to rely on your own judgement first. Using stop loss could lessen your partial loss but it would not able to save your whole money. If you make the same mistake over again again then using stop loss would be a just maintaining formality.