β#ForexChief #TakeProfit #StopLoss #trading #forexschool #forexeducation β
π² How to determine the optimal Take-Profitβ
π‘ Exiting a trade is often more important than entering, but usually, little attention is paid to profit taking. Take-Profit allows you to systematize trading and prevents emotions from reducing real profits.
β
We recall you: Take-Profit is a pending order to close a position after the price reaches a certain level. The level can be determined at the time of opening an order, or you can change the parameters for an open deal.
β
Classic money management (Take-Profit is two times more StopLoss) in the modern market is unprofitable: on a too active trend, the order is placed too close, and on a standard movement, the price may not reach this level.
β
We suggest thinking differently.β
Take-Profit by timeTrades can be closed automatically at a fixed time, before the release of strong news, after the close of the trading session (for example, European), or at the end of the trading day. This allows you to reduce risks during speculation or optimize trading costs on low volatility.
β
Take-Profit by volatilityIt is assumed that the price can travel a distance of at least 80-120% of the average daily volatility for a certain period - technical indicators or special services, for example,
mataf.net, can be used for the assessment. At this level, we fix the profit.
β
We will continue it in the next post.β
Profits to y'all!