Take profit one of the powerful tool available in MT4 – 5 (Meta trader), Professional and experienced traders know the importance of TP – Take profit and stop loss option and they will never forget to use them, but newbie’s to Forex trading don’t know the importance of those powerful tool lets see how to use them and why to use them.
Professional traders and brokers call them as one trade call which is where we place the trade and what is the stop loss and take profit all this combined is know as one trade call, in earlier times on phone trading the clients will tell the brokers about these numbers to start the trade broker will close based on the market movement.
After the meta trader if the trader made a trade he should set take profit and stop loss to avoid huge loss in market volatility, even i got a huge loss while placed a trade in US OIL one of the non predictable market, i placed trade with 1$ after some seconds market got mad and suddenly loss was 94 and closed. with in few seconds 94$ loss but market moved one sec up which is 10$ but i can’t take the profit by hitting close button because in fraction of seconds it went up and down to hell, if i placed a take profit or stop loss i can survived this market volatility it can happen any time.
some new traders complain about some times in take profit the market moves on their friendly direction which can cause less profit, yes it happen but it is much better than too much loss. so please don’t forget to use the automated loss and profit options in meta trader.