HFM (formerly HotForex): MT4/MT5 take profit and stop loss

HFM

HF Markets allows you to trade on MT4 and MT5, but most traders always set take profit and stop loss. If you do not set this, you may not be able to respond to unexpected large fluctuations in the market, and you may lose a lot.

What is Take Profit?

Take Profit is a setting that locks in profits. When the price specified by this setting is reached, the trader does not have to manually make a settlement visually, and the tool will handle it on its own. This take profit can be set when ordering on MT4 or MT5, so be sure to set it. Because you can’t be certain of your profit.

What is stop loss?

Stop Loss is the opposite of Take Profit, and is a setting that confirms the stop loss. When the specified price range is reached, the tool automatically performs loss cut settlement. This eliminates the need for traders to keep track with their eyes. Of course, this stop loss setting can also be set on MT4 and MT5, so be sure to set it. The market may move significantly while you are not looking at the chart, and you may lose a lot.

determine the ratio

Since you are going to trade, you have to decide the ratio. When you trade, you want to increase profit taking and reduce loss cut. In general, professional traders set the loss cut to 1 if the profit taking is set to 2. It is said to be a risk reward, and it is necessary to take a large amount of reward (profit). Most professional traders often set this risk reward at 1:2, 1:3. If you take too many rewards and set it to 1:10, the number of loss cuts will increase, and even if you make a profit, it will all come back. Distribute risk and reward in a balanced manner.

Setting Take Profit and Stop Loss

In MT4 and MT5, you can set take profit and stop loss when placing an order. In the case below, it is the PC version, but in the case of take profit, it is often described as the settlement limit, and in the case of stop loss, it is often described as settlement stop loss. By making this setting when ordering, you don’t have to keep chasing the chart with your eyes, so it will be a very easy trade mentally. This setting is highly recommended for beginners, so let’s take advantage of it.

This can be set in the same way on the smartphone versions of MT4 and MT5. By tapping an order, you can set Take Profit and Stop Loss. Be sure to set it before confirming your order.

Benefits of setting

There are only advantages to setting stop loss and take profit.

No need to see the chart with your eyes

Just set your stop loss and take profit in advance and leave it alone. There is no need to keep looking at the chart bothering you. Meanwhile traders can play or work.

prevent loss

When it goes backwards, it often goes unnoticed. Since the market is often turbulent suddenly, it is not uncommon to fly in the opposite direction while not looking at the chart. However, if you set a stop price, you can reduce the loss in advance.

profit taking

If you go forward, you often wonder where to take profit. In order to eliminate the need to keep chasing with your eyes, it is necessary to set the take profit in advance. If you set this, you can fix the profit without knowing it.

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