- Beginner
- Intermediate
- Advanced
- Completion
Related terms
A bearish reversal formation consisting of 3 candlesticks. The first candle will be bullish, followed by an indecision candle and ending with a bearish candle. This is found at the top of an uptrend. With other bearish confirmations, traders will look to place short positions.
Short for Foreign Exchange which is exchanging one currency for another. Forex trading is the purchase of one currency and selling of another simultaneously for profit
A number of currency units used to place a buy or sell position. View micro, mini, and standard lot. Also view contract size.
A term of measurement used to describe when trading. Pips are used to describe price movement.
An order you set with your broker to close out your trade if price goes in the opposite direction and hits your pre-determined exit price.
An order you set for your broker to close your trade once your pre-determined exit out of the market is reached.
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BeginnerEarly Stages For Beginners8 Topics
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Forex Terminology11 Topics
- Major and Minor Currency Pairs
- Basic Forex Terminology
- Pips & Ticks
- The Broker & The Spread
- What is a Lot?
- Stop Loss & Take Profit
- Margin & Leverage
- Retracement & Reversal
- When Can I Trade Forex? Sessions - Market Open and Close
- 3 Types of Analysis (Technical, Fundamental, Sentiment)
- 3 Ways a Market Can Go (Up, Down, Sideways)
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Margin & Leverage2 Topics
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IntermediateIdentifying Scams2 Topics
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Brokers for Beginners5 Topics
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Technical Analysis13 Topics
- Types of Charts
- Understanding Japanese Candlesticks
- Candlestick Patterns For Beginners
- Single, Double & Triple Candlestick Patterns
- Support and Resistance
- Confluences w/ Candlesticks & Support & Resistance
- Trendlines
- Counter Trend Trading/ Counter Trend Lines
- Fibonacci
- Moving Average
- Top-Down Analysis
- Fakeouts
- Consolidation Trading (Breakout, Retest, Continuation)
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AdvancedUsing Indicators6 Topics
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Technical Analysis (Part 2)8 Topics
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Market Structure5 Topics
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Fundamental Analysis9 Topics
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CompletionRisk Management for Beginners8 Topics
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Psychology for Beginners7 Topics
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Personal Psychology Questions2 Topics
Stop Loss and Take Profit
You didn’t think the forex market came with no perks did you? Let me introduce you to what could be your new best friends. Using both are KEY in keeping your risk low, and securing those profits. Not to mention, they allow you to place trades and leave them running while you focus on your day to day tasks.
Our trades aren’t always going to go in the direction we had hoped they would, which is why it’s crucial to use a STOP LOSS. In doing so, we are essentially picking the price point where we want our trade to exit out of if the trade goes the wrong way.
If we’re in a trade for a sell at 1.25000 and the market goes to 1.24800, we’re currently up 20 pips because we sold the pair, and price dropped. If price immediately reverses and heads towards 1.26000, we are currently losing about 100 pips (the money depends on the lot size x the number of pips you’re winning/losing). Instead of having a drawdown of 100 pips, you can set your stop loss to IMMEDIATELY get you out of the trade the moment you’re losing 30 pips. So it doesn’t matter if you’re playing basketball or watching Netflix, the VERY SECOND you’re losing 30 pips, your broker will close your trade for you without you having to check your phone!
It doesn’t necessarily have to be the lowest price point, take this illustration below for example.
Moving on to where we’re able to make our profits without having to stare at the charts 24/7. That’s right! You don’t need to be watching your trade play out the entire time just to ensure you make money!
Once you’ve marked up your chart, and determined a bias for your pair, you will then figure out your TAKE PROFIT. This is a price point where you want your trade to exit out if the market decides to go in the direction you predicted. It can be decided based on how you like to trade, your goals based on the pip count, or your R:R.
Essentially meaning if you’re out and about, but you want your broker to close the trade for you whenever you’re making $1000, or $2000, or $500, the minute you’re floating profit gets to that, your broker will close your trade because your take profit has been hit.
