Advantages of using SL and TP.

[George10 9932]

Hello my dear friends, traders and investors today I would like to discuss or rather remind you on the advantages of using stop loss (SL) and take profit (TP) in Forex trading.

  Below are some of the advantages I see to be very vital.

 

  Advantage of using take profit (tp);

 

 

Take profit is the price level that you set or desire the trade to be closed at with certain amount of profit you are satisfied with if the trade goes in your favour.

And this feature has a great advantage because it helps close your trade automatically with some profits even when your device goes offline therefore, make use of it when you are trading.

 

Advantage of using stop loss (SL);

 

Stop loss is the price level that you set to have the trade closed automatically with certain amount of loss if the trade goes against your favour or opposing direction.

 This feature has a very important advantage and it must always be used whenever trading because it minimizes the amount of loss to your account for example when you experience a network failure and the trade goes in opposing direction or sometimes you may be psychologically tempered with and fail to close the trade with a certain amount of loss thinking that the price will return to your favour and recover of which this doesn't happen sometimes therefore, this feature will help you out of that and always make use of it.

 @Mwangi @gourav789 I hope

My dear friends here will help me on adding more infor to the topic.

 

Happy posting, hope a little I have shared will help someone.

 

Edited September 18, 2020 by George10
Making a tag.

[Mwangi 5611]

Hey @George10 This is a very comprehensive post and sure enjoyed reading it, am not to good in using stop loss , though the way you have put it , it seems really essential to use it . its really important for one to really integrate and work on a good money management system because in the end we are able to really curate the best of everything.

[George10 9932]

1 hour ago, Mwangi said:

Hey @George10 This is a very comprehensive post and sure enjoyed reading it, am not to good in using stop loss , though the way you have put it , it seems really essential to use it . its really important for one to really integrate and work on a good money management system because in the end we are able to really curate the best of everything.

I'm greatful my friend it's always a pleasure sharing some knowledge with other friends so that they can benefit too and you are right money management also is very important to look upon when trading and make sure to apply proper lot size.

[Tolualive 116]

Thanks for the information, it essential to use stop loss and take profit to avoid losing all your capital you invested.it also help one be a more profitable trader with consistency 

[gourav789 2834]

obviously mate , stop Loss or stop profit is really a amazing option available on servel exchages . we just set our price accordingly to Market whenever market reach at that price automatically our postion closed or we received our profit/Loss .

let's understand by an example, if bitcoin is tradable on $10K in market .

we just make a buy long order , it means when market go up we are in profit or Market goes down we suffer from loss .

if we makes stop loss at 9500 and stop profit on 10200 , whenever bitcoin touch these prices our order automatically fill , even our mobile data is off .

we can edit or closed our limits at any time , even when order comes at closer.

 @George10 thanks mate for giving a opportunity 🙂 .

[Amr90 1064]

Determining profits and losses is important, but not all traders can do it.
Since beginners do not know where to place these orders, then they watch a video or two on YouTube and start placing orders incorrectly, which leads to losses,
I personally use Capital Management to see where to place stop loss orders.

[SuperCrypto 7193]

On 9/18/2020 at 8:59 AM, George10 said:

Hello my dear friends, traders and investors today I would like to discuss or rather remind you on the advantages of using stop loss (SL) and take profit (TP) in Forex trading.

  Below are some of the advantages I see to be very vital.

 

 

Risk management is a prerequisite when trading cryptocurrencies and is often overlooked by some investors and speculators. But the successful speculator knows the price he is willing to lose and at what price he is willing to sell to gain profits.

[George10 9932]

19 minutes ago, SuperCrypto said:

Risk management is a prerequisite when trading cryptocurrencies and is often overlooked by some investors and speculators. But the successful speculator knows the price he is willing to lose and at what price he is willing to sell to gain profits.

You are right every trader has the limit of loss they can tolerate or handle depending on their capital or trading experience but risking to much on one trade is not advisable and it should not exceed 5% of your capital or account balance because theris always another chance to gain some profits in the next trade,if today is not profitable then don't force it to be because you will make more losses but rather take a halt and hope for the next day or trade.

[dr4ch3 18]

On 9/18/2020 at 7:59 AM, George10 said:

Hello my dear friends, traders and investors today I would like to discuss or rather remind you on the advantages of using stop loss (SL) and take profit (TP) in Forex trading.

  Below are some of the advantages I see to be very vital.

 

  Advantage of using take profit (tp);

 

 

Take profit is the price level that you set or desire the trade to be closed at with certain amount of profit you are satisfied with if the trade goes in your favour.

And this feature has a great advantage because it helps close your trade automatically with some profits even when your device goes offline therefore, make use of it when you are trading.

 

Advantage of using stop loss (SL);

 

Stop loss is the price level that you set to have the trade closed automatically with certain amount of loss if the trade goes against your favour or opposing direction.

 This feature has a very important advantage and it must always be used whenever trading because it minimizes the amount of loss to your account for example when you experience a network failure and the trade goes in opposing direction or sometimes you may be psychologically tempered with and fail to close the trade with a certain amount of loss thinking that the price will return to your favour and recover of which this doesn't happen sometimes therefore, this feature will help you out of that and always make use of it.

 @Mwangi @gourav789 I hope

My dear friends here will help me on adding more infor to the topic.

 

Happy posting, hope a little I have shared will help someone.

 

Indeed, TP and SL very important. We can place our order, and then forget it (set and forget).

Big mistake in trading is that people usually like to move the SL when the price goes against our prediction, at the end the lose will be big.

[George10 9932]

7 minutes ago, dr4ch3 said:

Indeed, TP and SL very important. We can place our order, and then forget it (set and forget).

Big mistake in trading is that people usually like to move the SL when the price goes against our prediction, at the end the lose will be big.

Sure mate stop loss and take profits are very important features that we must always use at meta trader or any platform for leverage trading being it Forex or crypto currency and I prefer setting stop loss upon opening a trade to avoid massive losses when the price opposes my entry or analysis.

[Hasan211 65]

What are the advantages of Stop Loss/Take Profit? Stop Losses can limit losses. Take Profits allow the user to maximize profit by exiting a trade as soon as the market is at a favorable price.

[Dangasa 168]

Hello bro. There about 95 percent of traders lose their money without using stop lose and take profit. So never forget to use stop lose and take profit.

[ricardoramc 49]

The use of stop loss and take profit is only to configure the order to close automatically without having to be stuck in the computer all day, what must be taken into account is the broker's spread, because sometimes the take profit does not closes for a very minimal pips

[Calvinpriva 17296]

Stop loss and Take profit are one of the most useful tools for traders, without using them you can miss a good profit or you can earn a big loss. They are simple tools to use and they are available on many trading platforms.

[guatazoo 7150]

Advantage of using SL and TP is that you'll be be not required to be active in the market all the time if you have created the order, so you can leave your order active and go anywhere without stresses of loosing much money cause you already set SL to avoid loosing and TP to close the order with profit. 

[joemcgwa 3227]

For every experienced trader must use SL and TP because without set stop loss you'll be in danger to lose your capital when your prediction going wrong.

[huesca123 946]

hey all

a pip size calculator should also be part of your arsenal when trading forex. there are many out there to use. i use baby pips pip size calculator.

trading forex takes a number of things to be successful.

1) discipline

2) patience

3) money management

its also very personal. everybody has different trading styles, account sizes, personalities, etc. find what suits you best.

hope that helps.

ciao.

[Gwataman 147]

Executing a stop loss order is a great advantage as it limits an investors loss on trading,it has  an advantage thata you cant keep on checking your investment if the transaction hits an ecxecuted figure it will just stopp more loss from hitting you it has a  disadvantage that short term price fluctuations could actiavte a stop and triger an unnecessary sale.The benefit of using  a take profit order is that the trader doesnt have to worry aboutmanually executing a trade. A take profit order executes at the best possible price regardless of the underlying security behaviour

 

 

Edited November 14, 2020 by Gwataman
Gramatical errors

[guatazoo 7150]

The most advantage here is SL more than SP because stop loss is help to maintain your desired balance but stop profit is not that big issue to set because you can close yourself at a certain profit. 

[Abbas2.0 812]

On 10/2/2020 at 3:00 PM, s rohman said:

You can manage risk if you use SL TP you can manage profit and lost your money from your transaction from trading. 

Stop loss and take profit it is very useful in money management because stop loss prevent you from a great loss and take profit gives you the the enough profit you need and exit you you without being reversed to the loss

[duncun007 3577]

On 11/12/2020 at 1:42 AM, Calvinpriva said:

Stop loss and Take profit are one of the most useful tools for traders, without using them you can miss a good profit or you can earn a big loss. They are simple tools to use and they are available on many trading platforms.

yea i read on here that many people say they lost this much money holding this coin or missed out on profits, the use of stop loss to me is more important that TP because making back those losses will take longer times.

[MoralStories 1127]

I am not the expert but in forex trading there are most of the people who do not set stop los and they became the victim of losing all the capital or washing their account away.