Srading.com

Menu
  • Home
  • Markets
    • Forex
    • Stock
  • Fundamental Analysis
    • Economics
    • Money & Banking
  • Technical Analysis
    • Drawing Tools
    • Chart Patterns
  • Tools
    • Online Charts
    • Economic Calendar
    • Interest Rate Today (Live Widget)
    • Forex Market Hours
    • Currency Indexes Chart
    • National Holiday Calendar
    • CoT Chart
    • Quotes

RISK WARNING: Trding financial assets come with a high risk of losing money. So, everything you read on this website is for educational purposes or personal opinions only

Read our DISCLAIMER
Home
Forex
Take-Profit, Stop-Loss, and Trailing Stop Loss
Forex

Take-Profit, Stop-Loss, and Trailing Stop Loss

May 31, 2022 Zafari

Take-Profit, Stop-Loss, and Trailing Stop Loss are risk management tools.

In my personal opinion, for traders to manage their risks, they should use them always, and effectively.

Because humans are emotional creatures, these tools help them overcome the problems of the emotional decision-making process.

Take Profit

Take Profit (TP) is a tool that enables you to close your position in a profit at a targeted price.

Those who analyze the market using support and resistance lines use Take Profit the most. Others, such as wave traders, do not use it very often. Instead, they modify their Stop Loss level because they don’t believe in lines drawn on the chart.

Stop Loss

Stop Loss (SL) is a tool that enables you to minimize your losses.

A trader defines the SL based on signals created by indicators, chart patterns, fundamental analysis, etc. If the market goes against your prediction and touches the SL, your trade automatically closes in a loss that you can afford. If the price moves as you predicted, the SL will not move.

I always suggest you put a Stop Loss because no one can predict the market 100%. You also can be wrong, and you should accept that.

Trailing Stop Loss

Trailing Stop Loss (TSL) is a tool that adjusts the Stop Loss as the market price moves. The Trailing Stop Loss modifies the SL toward the targeted price only. It does not move backward.

For example: suppose that you bought USDJPY at 110.00, and you selected the Trailing Stop Loss to be 20 pips. Your initial SL is 109.80. Now, if the market moves upward and the price reaches USDJPY = 110.10, your Stop Loss level will move 20 pips upward at USDJPY = 109.90. Later if the price falls to USDJPY = 110.00, your Stop Loss still will be at USDJPY = 109.90.

Share
Tweet
Linkedin
Pinterest
Reddit
Email
Prev Article
Next Article
Tags:Forex

Related Articles

Equity and Balance in Forex
Equity and balance in forex can be confusing for some …

Equity and Balance in Forex

Forex Broker: Types and How to Choose?
Forex brokers are intermediary financial companies that connect currency traders …

Forex Broker: Types and How to Choose?

What Is a PIP in Forex?
Traders use PIPs in forex to express volatility in the …

What Is a PIP in Forex?

What Is a Lot in Forex? Completely Explained
A lot in forex is the measurement unit of the …

What Is a Lot in Forex? Completely Explained

Types of Forex Orders: Fully Explained
Generally, the types of order in forex is divided into …

Types of Forex Orders: Fully Explained

What Does Swap in Forex Mean? And How to Calculate?
Swap in forex or other financial assets is the interest …

What Does Swap in Forex Mean? And How to Calculate?

About The Author

Zafari

Zafari is a professional trader and has been in the financial market since 2014. He has a bachelor of public economics and an MBA. For some reason, he does not show his face. And he loves you all!

Leave a Reply Cancel Reply

  • Recent
  • Popular
  • Comments
  • Tags

Srading.com

QUICK LINKS

  • About
  • Cookies Policy
  • Terms & Conditions
  • Disclaimer
  • Privacy Policy
  • Contact Us

LATEST POSTS

  • Elliott Wave Theory Guide for Beginners
  • Top Continuation Candlestick Patterns
  • Top Reversal Candlestick Patterns
  • 6 Popular Continuation Patterns & How to Trade
  • 8 Popular Reversal Patterns and How to Trade Them

FOLLOW US ON SOCIAL MEDIA

  • Facebook
  • Twitter
  • LinkedIn
  • Instagram
  • Pinterest
  • Telegram
  • Reddit
  • YouTube

Trading financial assets are risky. Everything you read on this website is just for educational purposes or personal opinions only. Read our DISCLAIMER!

Copyright © 2023 Srading.com

Ad Blocker Detected

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker.

Refresh
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By continuing this website or clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie SettingsAccept
Cookies Policy
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT