Learn To Implement Trailing Stop In Forex Trading : how to trade on the forex market
Learn Trailing Stop In Forex Trading
Have you experienced:
Take profit is almost hit but the price reversed?
In hedging .. eee back direction again ...
Crazy right?
When you open positions and positions you are a profit but have not touched take profit that has been determined, what are the chances that will happen?
First, the price continues and your take profit is touched. Profit is yes .. :)
Second, the price reverses the direction and the profit you have got turned into a loss or even hit stop lossnya.
Events like this we can avoid with the use of Trailing Stop. What is trailing stop and how to install it? Let's learn the application of Trailing Stop in forex trading.
What is a Trailing Stop?
Trailing Stop is a feature of metatrader that serves to lock your profit by making your stop loss keep moving up near the current price if you put in the position Buy, and will continue to fall near the current price if installed in the position Sell.
New trailing stops will be active if your position is already profitable. With such a way of working, you do not need to worry anymore with changes in price direction that erodes the profit already obtained. Because by installing trailing stop you will not loss even if your stop loss is touched because the stop loss is already past the opening price.
So essentially, trailing stop serves to install a stop loss that can change automatically close to the current price so even if stop loss is touched, your trading results will still profit because the stop loss is past the opening price of the position.
How to install Trailing Stop
To install the trailing stop, right click on the open position, on the shortcut menu that appears select Trailing Stop. Then set the stop loss stop level for how many pips. In metatrader that uses 4 decimal digits, the minimum distance is 15 pips, while for 5 decimal digits at least 50 pips.
For more details see the picture below:
Example
You open Buy position GBP / USD at 1.28500 price and install Take profit at 1.29000 price. Then you install a trailing stop by selecting a distance of 50 pips. If the price moves up until you get 50 pips profit, the trailing stop will automatically be active, because the trailing stop function is to protect the profit. So if the price has touched 1.28550, automatic stop loss will be installed at 1.28500.
Prices continue moving upwards, automatic trailing stop will follow. Suppose the price moves up to 1.28950 and trailing stop follows and stops the stop loss at 1.28900 then the price reverses and descends to touch the stop loss at 1.28900, the position will be liquidated. So you can see here, although open liquidated due to the stop lossnya, but the end result, you still get a profit of 400 pips.
Here's an example of an open position that has been installed trailing stop 50 pips:
Noteworthy
Trailing stop will only be active if your position has profit, to avoid large losses before trailing stop is active, you should install a stop loss first.
Trailing stops working on your own platform or terminal, if the computer is off, your trailing stop will automatically die.
The above info can actually add several million rupiah in your asset list. Do not know how? Yup .. One of them through forex trading .. learn here , 100% free.
Learn Trailing Stop In Forex Trading
Have you experienced:
Take profit is almost hit but the price reversed?
In hedging .. eee back direction again ...
Crazy right?
When you open positions and positions you are a profit but have not touched take profit that has been determined, what are the chances that will happen?
First, the price continues and your take profit is touched. Profit is yes .. :)
Second, the price reverses the direction and the profit you have got turned into a loss or even hit stop lossnya.
Events like this we can avoid with the use of Trailing Stop. What is trailing stop and how to install it? Let's learn the application of Trailing Stop in forex trading.
What is a Trailing Stop?
Trailing Stop is a feature of metatrader that serves to lock your profit by making your stop loss keep moving up near the current price if you put in the position Buy, and will continue to fall near the current price if installed in the position Sell.
New trailing stops will be active if your position is already profitable. With such a way of working, you do not need to worry anymore with changes in price direction that erodes the profit already obtained. Because by installing trailing stop you will not loss even if your stop loss is touched because the stop loss is already past the opening price.
So essentially, trailing stop serves to install a stop loss that can change automatically close to the current price so even if stop loss is touched, your trading results will still profit because the stop loss is past the opening price of the position.
How to install Trailing Stop
To install the trailing stop, right click on the open position, on the shortcut menu that appears select Trailing Stop. Then set the stop loss stop level for how many pips. In metatrader that uses 4 decimal digits, the minimum distance is 15 pips, while for 5 decimal digits at least 50 pips.
For more details see the picture below:
Example
You open Buy position GBP / USD at 1.28500 price and install Take profit at 1.29000 price. Then you install a trailing stop by selecting a distance of 50 pips. If the price moves up until you get 50 pips profit, the trailing stop will automatically be active, because the trailing stop function is to protect the profit. So if the price has touched 1.28550, automatic stop loss will be installed at 1.28500.
Prices continue moving upwards, automatic trailing stop will follow. Suppose the price moves up to 1.28950 and trailing stop follows and stops the stop loss at 1.28900 then the price reverses and descends to touch the stop loss at 1.28900, the position will be liquidated. So you can see here, although open liquidated due to the stop lossnya, but the end result, you still get a profit of 400 pips.
Here's an example of an open position that has been installed trailing stop 50 pips:
Noteworthy
Trailing stop will only be active if your position has profit, to avoid large losses before trailing stop is active, you should install a stop loss first.
Trailing stops working on your own platform or terminal, if the computer is off, your trailing stop will automatically die.
The above info can actually add several million rupiah in your asset list. Do not know how? Yup .. One of them through forex trading .. learn here , 100% free.
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