How to set take profit
Placing stop orders is one of the main points of Forex trading; in addition to the fact that they can
significantly reduce losses, you can also plan in advance the amount of profit received.
To do this, immediately when opening a new order, set the take profit size, which will allow you to close the position when a certain profit level is reached.
How to set a take profit - this question comes up quite often, so we will dwell on it in more detail. In addition to purely technical aspects, the correct calculation of the value of this order also plays a role.
After all, any trader hopes to receive maximum profit from one transaction, but at the same time, the price can make a reversal without reaching the desired value, and then most likely the transaction will be closed with a loss.
In this case, you simply use a trailing stop loss, gradually moving it to the breakeven area.
Technical points.
Take profit should be set simultaneously with opening an order; to do this, simply set the desired value in the new order window on the take profit tab.
When you open a buy deal, it is greater than the current price value, you add the planned number of profit points to the current price, if you open a sell deal, it is less.
Take profit order size
Everything here is purely individual, the longer the transaction, the larger the size of this indicator, although it should be taken into account that some dealing centers can regulate the minimum take profit value.
It all depends on the time period of trading and the dynamics of the trend, for example, in an hour the price moves about 20 points, this will be the size of our order. However, it doesn’t mean that at all. That you will not be able to close the position earlier, if you wish, you can take 15 points of profit.
When determining the size. I personally focus specifically on the market situation; I get data from trend history analysis.
For example, if during the current session the price rose to 1.2580, and is now at the level of 1.2530 and rising, then there is no point in setting the value above 1.2570, but each trader has his own assessment of the situation and desire to make money.
Another positive property of take profit is that it removes psychological pressure from the trader, by setting the price level at which the order will be closed, you no longer need to constantly ask yourself the question - should you close the position or not?
Alternatively, you can use special scripts or indicators to calculate the required size:
- Take profit for pending orders - http://time-forex.com/skripty/teyk-prfit-otlog-ordera
- EasyTakeProfit script - http://time-forex.com/skripty/easy-takeprofit