When trading the forex market, it is important you have a risk management plan on the level of loss your account would take per trade.
That being said; irrespective of how much trading capital you have, or how accurate your trading strategy is, every trader needs to know how to set stop loss and take profit in MT4.
HOW TO SET STOP LOSS ON MT4 ANDROID
When trading on Mt4 Android, stop loss or take profit cannot be set by dragging to zones like PC.
To set stop loss and take profit on MT4 android, you will use your horizontal tool to mark the line at which you want to set your take profit/stop loss.
When you place the horizontal line, the number that shows up should be copied down and manually typed in the stop loss box when modifying the current running trade.
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HOW TO SET STOP LOSS AND TAKE PROFIT IN MT4
This is the easiest way to set stop loss and take profit in MT4;
- After placing your trade with your chosen volume (market Execution)
- You will see a green horizontal entry line showing the level at which you place your trade
- Now move your cursor to the green horizontal line
- Click and hold on the green horizontal line and drag to stop loss to take profit zone you desire ( with consideration of the market structure of the pair)
STOP LOSS AND TAKE PROFIT INDICATOR
If you find it difficult to place your take profit and stop loss at the right zones, this is because you have no knowledge of support and resistance zones. Take profit and stop loss are best set at support and resistance zones.
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HOW TO CALCULATE STOP LOSS AND TAKE PROFIT
Calculating your stop loss and take profit depends on your volume size. And this is it below
Volume size points profit loss
0.01 1000 $10 $10
0.1 1000 $100 $100
1 1000 $1000 $1000
Note: putting into consideration the spread and swap fee per trade.
WHAT IS THE BEST STOP LOSS STRATEGY?
Before you can have a stop loss strategy, you would first have a winning trading strategy; this is why there is no one answers to this. So based on your winning trading strategy you can now have a stop loss strategy.
To make this easy for you, a winning trading strategy will involve understanding market structure. However, a professional stop would be risking 1-5 percent of your account per trade.
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WHAT IS THE 1% RULE IN TRADING?
The 1% rule in trading is when traders place trades and do not risk more than one percent of their entire capital.
When entered with big volumes, they use tighter stop-losses in a total value of 1% loss
When entered with smaller volumes, they put their stop loss far away from the entry price and in total value 1% loss.
WHERE DO YOU SET STOP LOSS AND TAKE PROFIT?
Stop loss and take profit are best set at support and resistance zones. This is of course aftermarket analysis of the trading pair.
CAN YOU SET A STOP LOSS IN PROFIT?
Yes, you can set a stop loss in profit. After placing your trade and you are in good profit you can then adjust or place your stop loss above the entry price (if bullish) or below (if bearish).
At this point, if the market happens to retrace or reverse to your stop loss level, you will exit the market with a profit on that trade.