stop loss/profit

Hi guys, This is prob a bit of a noob question but when I come to placing a trade im never sure how much of a stop loss to put in or how much of a profit to aim for based on my trade value.
As an example say I was to place a trade to go long at £5 per pip and aim for a 20pip gain then bail out with a smile and £100 extra in my account sounds easy but my question is if im aiming for £100 profit is there a general rule on how much of a stop loss or how much money to risk to gain that £100 profit? I know all trades are different and each to their own etc but what do you guys do? do you stick a high stop loss and put all your faith in the trade or do you keep stop losses low just take the loss and move on?

Rich, It's all depending on your trading strategy, how much risk you can take. for scalpers, they always set this very small. My broker is hotforex and they are using MT4 platform, when you trade, there will be SL and TP in every deal, keep testing and you will find your own way.

A noob question but one that continues to cause trouble no matter how long you play this game. Exits are the key, not chart patterns or lunar phases.

Always keep losses from your initial stop being hit small - not more that 2% of your account value. Locate the stop at the point nearest entry at which price will now be telling you the picture has changed, the reason for getting in where you did has now gone. Think about it, once you're in a position, price will only continue to move in your favour if other people believe the picture is as you originally saw it - if even you think the picture has changed, they will stay out, or even take the opposite direction against your trade.

Locate an initial target that your TA experience tells you price will more probably reach than not. If that price level is not at least as far from entry as the stop, abandon this trade idea and move on.

if price moves well towards your target, consider moving your stop to the entry point so you can at worst break even. Or consider using a trailing stop once price has gone into the money.

I would never put special faith in any one position and would never move a stop further out.

Try using the same indicator to calculate your exits as well as your entries. This way you should not be found caught between a rock and a hard place.

Never choose a fixed pip number and use it across multiple ccy pairs...

Each ccy pair moves a different amount of pips, try to place your stop loss based on what you are looking at on the ccy pair that you are placing the SL on, like using a swing or a ratio of a signal candle for example.

In my experience of trading, rarely does "one thing fit all" !

Practicing will make you find the best way for you to place your stop loss/profit,
good luck!

krista said:

Anyone tried marketsworld.com for binary options yet? They say they pay out 95% profit on winning trades which is substantially more than all other binary websites (I have used anyoption before which pays about 71%) and marketsworld are licensed in Great Britain? Are they a new site? I had not heard of them until recently.

Click to expand...

I also don't have any information about this website but I hope whatever you've said is right and I'll gonna give it a try as well..!!