Trading Using Take Profit

Majalahburung.com – Take advantage of has many advantages. If the market is in movement tight, take profit can quickly liquidate Your position, so that the benefits can be enjoyed immediately. So take a chance a priority to help Your trading. Then how to use the profit? Let’s discuss them below.

Take profit is the limit of the highest price or profit in cans. If the command is opened to such restrictions then the position will be closed automatically and the profits. Why earnings should be limited? The goal is that profits can be achieved easily. Profit target low partner with a small profit, but it is easily achieved.

Definition of take profit is almost the same with the loss of dismissal. If the stop loss is used to determine the limit of loss, then the profit is the opposite; namely to determine a profit target achievement. In determining take profit, we should not be too greedy, determine the profit target is realistic in accordance with the analysis.

From the chart of the example of the GBP / USD above, we put the advantage on the price of 1.2478. The reason is simple, only because the highest price candlestick before.

Next, we put the position of the purchase price 1.2409 because at that time there were news release and the buyer seems to begin to master. It should be noted, the distance from the open price to the line to take the advantage in the chart above is 69 pips.

Uh, it turns out that not yet had time to reach the target take profit, the bullish trend’ve run out of momentum. As a result the price stalled at number 1.2470. Sayang banget, whereas only 8 pips.

In addition, the advantages can be, uh, in fact, the position of the teribas last by the reversal. Originally we hope Lucky 69 pips, the actual price to be reduced -30 pips more.

That’s the reason why we need to learn more before installing the profit. For example, with a risk: reward ratio or price action. It was only some way saja loh, so continue to follow the article Seputarforex so You are more observant in laying the profit.

The Advantage Of Using A Profit.

We never know what will happen tomorrow, the day after tomorrow, or next week. May this day we’re lucky, tomorrow can also be our loss. So it is very important for us to target the right trade. The advantage of using Take Profit is:

  • The liquidation of the position automatically: You don’t have to always be in front of the computer to close the transaction. By doing so, You can channel Your attention and energy on other things that are more important.
  • Financial control: take advantage can set the gain of the reference on trading systems appropriate Money Management.
  • Evaluation of material: take profit can also be used as evaluation materials to improve trading performance. Of course you need a trading journal to record the profit target.

Over time, you’ll get used to using the profits every time you open a position. Thus, each position will provide constructive information in building a trading system is consistent.

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