Have you ever experienced a reversal when the price was just a few pips away from TP? I am referring to reversals that go way past the entry price and end up hitting the Stop loss?
There is an 80% chance that you have experienced this as a Forex trader, so you need to master the art of not just managing your risk, but locking in your profit as you trade.
The most popular way that traders manage risk is to adopt the Take Profit and Stop Loss method and by application of this method, traders can easily close trades at desired price levels without sleeping on the chart.
While some traders can set the parameters and wait for the trade to play out, some traders begin with a certain stop loss at entry and gradually adjust the stop loss as the trade moves into profit.
For example, when you enter a trade with a take profit set at 30pips and a stop loss set at 10pips, when the trade advance in profit by more than 15 pips, you can decide to adjust SL to entry price to remove the risk of any loss.
As price moves closer to TP you can consider moving the SL to 15 pips (in profit) to lockdown some profit in case price decides to reverse or pull back before reaching your desired TP. The above example is manual and will mean you have to watch your charts.
What If I told you that there was a way to make these adjustments just once and have it effected on your trade till it closes without further manual input?
Yes! The Trailing Stop AKA Moving Stop Loss allows you to adjust your stop loss with just a simple click on each trade and today we shall be looking at how to use this tool to lock in your profit as you trade on the 7Bforex platform.
This feature allows you to set an instruction for exit on your profitable trades by simply trailing price by a number of pips.
When you set a trailing stop of 50 points (5 pips), you are telling the system that as price moves in your direction, your stop loss should be adjusted 5 pips behind the market price as the trend moves.
If you set a TP of 30 pips, SL of 10 pips, and a Trailing stop of 50 points(5 pips), the moment that price moves 5 pips in profit, your trailing stop activates and continues to move 5 pips behind market price.
So imagine that price eventually stops moving in your direction at 28 pips and begins to reverse, your stop loss has automatically been moved to 23 pips (in profit) and your trades will close if price reverses back to 23 pips.
How to set the Trailing Stop on PC: Setting the trailing stop is easy on the 7Bforex platform and all you need to do is:
- Place your trade.
- Right-click on it and select the trailing stop feature.
- Select the number of points you desire. (Take note that trailing stops are set in points, so to get the pip value, you have to divide by 10, e.g. 50 point is equal to 5 pips, 30 points is equal to 3 pips and so on).
With this one tool, you can safeguard your profitable trades against reversals and lock in more profit than before.
Ready to try out the trailing stop right away? Make a deposit above N20,000 into your account and get a 100% boom bonus instantly.
With this 100% boom bonus, you will be able to take more volume, make more profit, and with the trailing stop feature, you will be able to lock in as much profit as you can!