WHERE TO PLACE STOP LOSS AND TAKE PROFIT ORDERS ~ reviews on forex trading
As a rule, a Stop Loss order should be placed closer to the opening price, an order instead of Take Profit should be placed away from the opening price. If this philosophy is strictly followed, a trader needs to make the right decisions only half the time to make a profit.
For example, with a 30pip stop loss order of a 100 take profit pips , a trader only needs to be right 30% of the time to make a profit. Where to place these orders will depend on how much risk a trader is willing to take.
In addition, the Stop Loss order should not be too close to not make it obsolete compared to normal market fluctuations.
As for the Take Profit, they should be related to realistic profit expectations , taking into account the duration of the market position and market expectations.
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