Stop loss or Take Profit??
- Thread starter Samuel23
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Ya stop loss can minimized our loss. However, we should also anticipate when we are going to take profit. This is something even harder as if we take a profit at a certain level and then you see it goes to the next one where you could have got a better profit surely you will be 🙁 This is something that we need to master in forex and if anyone have a better overview how we can manage it efficiently. Please share. Thanks
Hi Samuel,
If you use Fibonacci lines, you can determine where to put your SL and TP in accordance with these points. Watch out for Fib lines that correspond with a pivot/support/resistance lines – which are very significant areas for where to place your stop or your target.
Kathia
If you use Fibonacci lines, you can determine where to put your SL and TP in accordance with these points. Watch out for Fib lines that correspond with a pivot/support/resistance lines – which are very significant areas for where to place your stop or your target.
Kathia
Hi Kathia,
Thanks for your suggestion about the Fibonacci lines concerning where to put ther ST and TP. However, i would really appreciate if you can explain and elaborate more about this topic as i am a bit confused about it. We can surely benefits from it as others also can learn about it. Hope to hear from you soon. Thanks again!!
Thanks for your suggestion about the Fibonacci lines concerning where to put ther ST and TP. However, i would really appreciate if you can explain and elaborate more about this topic as i am a bit confused about it. We can surely benefits from it as others also can learn about it. Hope to hear from you soon. Thanks again!!
I always use them in Forex, especially S/L. You need to decide that level before you enter any trade as you have no emotional attachment to the trade and once you have decided on a S/L level do not adjust it. I set my T/P as well so I can place an order or execute it and don't worry about it, move on to the next trade.
Hi Samuel,
Look at it this way. A wave is between values 0 and 100 fibo and any wave has a correction.
The minimum level for a corrective way (to be calculated as correction and to consider that the wave made his correction is 61.8 fibo). The maximum level accepted for correction of the wave is 38.2.
If it bounces back from those levels we can trade as follows: stop loss under the level of the correction ,and target is next fibo level, namely 100
I will attach a chart to show you an example.
So this is a fibo wave and this is how professional traders use it.
If the correction goes below 38.2 and hit 23.6 the correction becomes a wave and we set fibo in the opposite direction, with 100 down and 0 up.
It's a simple and good way of trading, but not many know about.
Kathia
http://screencast.com/t/XXmptsHt
Look at it this way. A wave is between values 0 and 100 fibo and any wave has a correction.
The minimum level for a corrective way (to be calculated as correction and to consider that the wave made his correction is 61.8 fibo). The maximum level accepted for correction of the wave is 38.2.
If it bounces back from those levels we can trade as follows: stop loss under the level of the correction ,and target is next fibo level, namely 100
I will attach a chart to show you an example.
So this is a fibo wave and this is how professional traders use it.
If the correction goes below 38.2 and hit 23.6 the correction becomes a wave and we set fibo in the opposite direction, with 100 down and 0 up.
It's a simple and good way of trading, but not many know about.
Kathia
http://screencast.com/t/XXmptsHt
Last edited:
Thanks Katia,
I can now say that i have understand the Fibonacci Line. It really interesting and it something that i would go ahead and learn more concerning Fibonacci trading and will later tell you how it goes for me. However, thanks for jigging the an example it will really help me indeed.
I can now say that i have understand the Fibonacci Line. It really interesting and it something that i would go ahead and learn more concerning Fibonacci trading and will later tell you how it goes for me. However, thanks for jigging the an example it will really help me indeed.
Thanks for helping me on this one Kathia. I have tried using Fibo lines in my trades. At first i was not at ease with it as it was my first time but gradually when i understand a little bit more how we use it then it became easier. However, it is only few days that i am using your system and i have not yet master it well. If ever i do have question, i will certainly ask you? However, if you do habe more suggestion about forex, please share it.
Hi Samuel,
Yes it is better to use the fibo lines along with other classical technical analysis methods. Look for classic patterns such as double tops, double bottoms, head and shoulders, triangles etc.
Have you heard of Elliott waves? This works very well with Fibonacci as I presented it to you in the example. Using these 2 in conjunction would give you a very high success rate, once you are correctly identifying the waves on the chart.
In any case, be consistent and be patient. It will take at between 2 and 4 years before you find you trading at an acceptable level. To become a professional in the field, you need a lot of experience - trading at least 5 years or 10,000 hours.
Don’t give up and you will progress. Again don’t hesitate to ask for advice.
Kathia
Yes it is better to use the fibo lines along with other classical technical analysis methods. Look for classic patterns such as double tops, double bottoms, head and shoulders, triangles etc.
Have you heard of Elliott waves? This works very well with Fibonacci as I presented it to you in the example. Using these 2 in conjunction would give you a very high success rate, once you are correctly identifying the waves on the chart.
In any case, be consistent and be patient. It will take at between 2 and 4 years before you find you trading at an acceptable level. To become a professional in the field, you need a lot of experience - trading at least 5 years or 10,000 hours.
Don’t give up and you will progress. Again don’t hesitate to ask for advice.
Kathia
That really nice Kathia. However, i can see that it do takes time to really manage this well. I will surely do some more reading about it and also surely take your advice if ever am about to trade using this Formula. Thanks a lot for sharing, i am sure that it will help others as well and if some do want to try it am sure they'll become a very good trader.It nice when we discover new ways of trading Forex.
Stop Loss = Order placed to get you out of a trade that goes against you to guard against runaway losses. This is normally a "stop" order.
Take Profit = Order placed to exit a trade once it's reached the price objective you have for the position. This is normally a "limit" order.
Stops and targets should be determined by your trading strategy, not just some made up number. Test, test, test.
As for when you place a stop - if you are long then the sell stop should be below the current market price, while if you're short then the buy stop must be above the current market price.
Take Profit = Order placed to exit a trade once it's reached the price objective you have for the position. This is normally a "limit" order.
Stops and targets should be determined by your trading strategy, not just some made up number. Test, test, test.
As for when you place a stop - if you are long then the sell stop should be below the current market price, while if you're short then the buy stop must be above the current market price.
Thanks for sharing. It really simple and easy and am sure many will learn from this post. If ever you do have more ideas and suggestions concerning Forex, do share it with us as we will all benefit from it. Thanks again and hope to hear more from you.
ezrydn
Active Trader
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