How to use Stop Loss Take Profit Strategy?

1. Theforexsecret.com How to use Stop Loss Take Profit Strategy?

2. Introduction Some people say we should not use stop-loss because it is a sure loss. The meaning of their word is if you stop loss which means you are sure to incur a loss. Some say suing stop-loss expose you to the brokers who hunt your stop loss and you are surely going to lose your money. Some other people say operators know where your stop loss so ultimately it hits the point. Trading in the Forex Market is like driving a car. In a car, there are many indicators in the dashboard for fuel, for mileage, indicator but none of these work if you do not know how to drive the car. In trading, many people use many things. For example, some use Fibonacci, some use support and resistance, some use trend-line. In driving what helps you the most is your directions, brake, accelerator nothing else. Same like in trading there are only a few things:-

3. To Buy and To SaleTo Long or To Short You want to do Short or LongWhere you will put your break means where you will put your stop loss.Where you will put your accelerator Trading in the Forex Market is like driving a car. In a car, there are many indicators in the dashboard for fuel, for mileage, indicator but none of these work if you do not know how to drive the car. In trading, many people use many things. For example, some use Fibonacci, some use support and resistance, some use trend-line. In driving what helps you the most is your directions, brake, accelerator nothing else. Same like in trading there are only a few things

4. The most crucial problems happen with small traders. Because they do not close stop-loss. They take a big hit, incur a big loss and their account becomes zero but in Take-Profit they make $50 they become happy. That is the problem with traders they use Take-Profit but they do not use Take profit. When you let your loss to go long and do not allow your profit to go long, it creates a big problem which does not allow retail traders to come in profit. On the other hand, the person brought the idea of Stop-Loss and Take­-Profitare a little bit contradictory.

5. Don’t say Stop Loss says Save Capital: Stop loss itself is a very negative word, it reminds you that you are in loss. It downgrades your trading Psychology. On the other hand what stop loss does? It actually saves your capital. Save Capital helps you to encourage you to save your capital in Micro and macro Levels. It gives a positive outlook toward stop Loss.  Don’t say Take profit sayStop Profit : Take Profit sounds very amazing. That is the reason why 90% of people use take-profit but do not use a stop-loss.Take-Profit is too positive to be true.

6. Don’t say Take profit  say Stop Profit : Take Profit sounds very amazing. That is the reason why 90% of people use take-profit but do not use a stop-loss.Take-Profit is too positive to be true. When you use take profit, you literary stop making a profit. In Long-period you stay in a loss but when you enter into profit, because of your greed you stop it. You made the correct decision but suddenly you change it. For example, you bought bond and the price is increasing day by day, will you sell that land immediately, no. So why you use stop profit so frequently. That is the attitude we have to change.

7. Save capital and Stop profit this is the strategy all about. You should know where to start and where to stop. And the remaining all tools (eg: Support and resistance) are just blinkers but what helps you the most is Save capital and Stop Profit. People tend to follow other people’s footsteps. Most of the time people do not analyze or triangulate the information they hear. People having little knowledge about the market invest in the currency market with all their savings and when the price fall they cannot survive. That is the reason you need to learn how to place your Stop Loss and Take Profit option.

8. Conclusions: So in Forex trading, it is very important to keep all these things in mind. Do not let your emotion to trade. Follow the trends, follow the analysis. Try to do realistic trading in a demo account. Talk to your mentor. Take it professionally. Whether you want to be a trader or investor, you can take any kind of help from our theforexsecret.com