Tactics - stop loss plus take profit.

This is one of the most common tactics on Forex; most traders, without even knowing it, use it intuitively using stop orders in their work.

At its core, the Stop Loss Plus Take Profit Tactics implies that no matter what trading strategy is used to make a profit, these two stop orders are set in any case before starting a trade.

Moreover, they are installed according to the same rules; this will be a tactic; there are many variants of these rules; below we will talk about them.

First of all, you should remember that stop loss and take profit are set at the moment of opening a position, and not after the order has already been placed. Both stop loss orders are important - it protects the deposit, take profit - it allows you to take profit and eliminate market pressure on the trader.

1. A simple option - here a certain number of points is taken as a basis, for example stop loss - 20 points from the current price, take profit - 30 points.

This approach is better than no approach, but more often it only leads to early stop loss triggering. 2. On support or resistance lines - in a downward trend, the stop loss is set slightly above the resistance level, the take profit is not reaching the support level and vice versa.

3. On the magnitude of the correction - we look at how much the price usually rolls back and set the stop loss a little more than this indicator. With take profit, everything is more complicated, you should take into account where the price is now, how long you plan to hold the deal and the nearest level.

The main rule of this tactic is its constant use; it is the best way to protect a trader’s deposit from complete loss.