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Forex Guide - What do you feel when you almost hit Take Profit then turn into Stop Loss?
When the position was profit (floating profit) but still have not touched the level of take profit then there are two possibilities that you will experience.
The first is: Your TP get hit so you get profit.
The Second is: TP line you almost hit but then reversed into a loss, and later, it touch the Stop Loss at the end.
With Trailing Stop feature, you will not worry anymore with it. Because Trailing Stop function is to lock your profit.
So, if put Trailing Stop, the result is still profit because Stop Loss line will move past a position opening price.
For example, you open Buy EUR / USD at 1.2500 price, and Take Profit at 1.2550. Then you put a trailing stop. So when you buy the position of being the profit, Stop Loss will automatically turn itself along with the rising price of EUR / USD.
So, for example, the price has reached 1.2548 (slightly longer touches take profit), but then back down again, then the price will be intercepted by Stop Loss that has been trailing. Stoploss touched so although the results still profit because the value stoplossnya already higher than the opening price Buy position.
At no stage Trailing Stop function can be selected pips trader to menentuk distance how many pips trailing stop functioning. At the Metatrader 4 Digit, minimal 15pips. While in Metatrader 5 Digit, at least equal to the spread.
How to Install Trailing Stops in Metatrader?
Here's an example of how to put a trailing stop in MetaTrader 4 digits.
Please right click order / position you are running. Then select the trailing stop, and define the distance pipsnya. Note the picture below:
put a trailing stop
In the picture above, net income / profit long position is 12pips. So when profits had reached 15pips, trailing stop function will work, that is changing the Stop Loss at least equal to the price of the Open Position is 1.2131
Stop Loss will continue to rise, along with rising prices. Suppose profit has reached 20pips, then the stop loss will automatically rise from 1.2131 into 1.2136. So it went on. Until the price touches your TakeProfit.
If anything were apes (takeprofit untouched then the price back again), then the price will be intercepted by Stop Loss that has been trailing. So you do not need to worry, because even if you are touched Stop Loss Profit final results still.
Below is an example Trailing Stop working
TrailingStop
In essence trailing stop is a way to change the automatic stop losses close to the price at this time so that when it touched sail trading stoploss still profit because the stoploss has passed through the opening price of the position.
That is the explanation of the trailing stop, please use the trailing stop to avoid a reversal that could cause harm.
Good luck..
When the position was profit (floating profit) but still have not touched the level of take profit then there are two possibilities that you will experience.
The first is: Your TP get hit so you get profit.
The Second is: TP line you almost hit but then reversed into a loss, and later, it touch the Stop Loss at the end.
With Trailing Stop feature, you will not worry anymore with it. Because Trailing Stop function is to lock your profit.
How it works?
Trailing Stop will make the Stop Loss line continued to move up closer to the price that is moving at a certain pips distance when mounted on BUY position. As well as the trailing stop will make the Stop Loss line keeps moving down when mounted on a Sell position.So, if put Trailing Stop, the result is still profit because Stop Loss line will move past a position opening price.
For example, you open Buy EUR / USD at 1.2500 price, and Take Profit at 1.2550. Then you put a trailing stop. So when you buy the position of being the profit, Stop Loss will automatically turn itself along with the rising price of EUR / USD.
So, for example, the price has reached 1.2548 (slightly longer touches take profit), but then back down again, then the price will be intercepted by Stop Loss that has been trailing. Stoploss touched so although the results still profit because the value stoplossnya already higher than the opening price Buy position.
At no stage Trailing Stop function can be selected pips trader to menentuk distance how many pips trailing stop functioning. At the Metatrader 4 Digit, minimal 15pips. While in Metatrader 5 Digit, at least equal to the spread.
How to Install Trailing Stops in Metatrader?
Here's an example of how to put a trailing stop in MetaTrader 4 digits.
Please right click order / position you are running. Then select the trailing stop, and define the distance pipsnya. Note the picture below:
put a trailing stop
In the picture above, net income / profit long position is 12pips. So when profits had reached 15pips, trailing stop function will work, that is changing the Stop Loss at least equal to the price of the Open Position is 1.2131
Stop Loss will continue to rise, along with rising prices. Suppose profit has reached 20pips, then the stop loss will automatically rise from 1.2131 into 1.2136. So it went on. Until the price touches your TakeProfit.
If anything were apes (takeprofit untouched then the price back again), then the price will be intercepted by Stop Loss that has been trailing. So you do not need to worry, because even if you are touched Stop Loss Profit final results still.
Below is an example Trailing Stop working
TrailingStop
In essence trailing stop is a way to change the automatic stop losses close to the price at this time so that when it touched sail trading stoploss still profit because the stoploss has passed through the opening price of the position.
That is the explanation of the trailing stop, please use the trailing stop to avoid a reversal that could cause harm.
Good luck..
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