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To be Safe in Forex Trading, You can Use Stop Loss Orders and Take Profit

It is said that FXCM Markets Metatrader 4 are random. Even if you have performed a very thorough Technical Analysis and checked all the relevant news reports, the market may still go in the opposite direction. You realized this and you closed the trade without further loss. You may have missed this moment because your eyes were off your screen and you didn’t realize it. The market could then spike, bringing your balance down to zero. This can also occur when your trade is profitable and the market reaches the target level, but then goes the opposite way. It could be that you have been distracted for only a minute or even just to go get your coffee.

Use Stop Loss Limits and Take Profit Limits when placing Forex Trading Orders to protect yourself against these scenarios.

You can set a price for the order that will close if the market moves against you. You can save your account if you see a big move in the market.

Take Profit: This is the limit price you choose to end a trading position when your profit target has been reached. It helps to secure your profits if the market moves in an opposite direction when it reaches the level you expect.

This is the Stop Loss Limit that moves with the changes in the price. Stop loss limits will move with the market price if the prices are moving in your favour.

As an example, if you set your trailing stop loss to 10 pips for a Buy/Long trade. Your Take profit would be 30 pips. Market moves by 20 pips to your advantage, then the opposite. Now with the 20 pips that the market has moved in one direction your Stop Loss will move also 20 pips. The Stop Loss that you originally set, 10 pip lower than the entry price now sits 10 pips higher. This means that if you still hit your stop loss, your 10 pips will come from your trade. You can still make money with a trailing Stop even though your take profit target has not been reached.