Moving Stoploss to break even | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

Auto moving stop loss to break even without stalling 10 replies

Moving stop to break even or not 22 replies

Securing your trades by moving s/l to break even 12 replies

Moving Stop to B/E (Break Even) Discussion 23 replies

Moving stop loss to break even question. 9 replies

Moving Stoploss to break even

  • #1
  • First Post: Jul 17, 2016 11:21pm Jul 17, 2016 11:21pm
Hello all

Maybe this is a stupid question. But if I don't ask, I will never learn

I don't understand the rationale of moving the stoploss to BE after the trade is in profit. I will ask my question using a simple example

Let's say that I have a sell trade open with 20 pip SL and 25 pip TP. Once the trade is in 24pips profit I move the SL to BE and remove the TP hoping to catch more and more pips.

Now if the price goes back up, it will hit SL and the trade will be closed at BE. If the price goes down I will gain more pips.

Let's say it hits SL at BE. Now isn't this the same as opening a new trade? I mean when I moved SL to BE I had 24 pips in my pocket. But by not taking the profit by closing the trade at that time, I have lost that 24pips. Isn't it the same as closing the current trade and opening another trade at the new price? (Previous trade open price PLUS 24 pips) Isn't it like winning the first trade and losing the newly opened (hypothetical) trade?

Can someone please explain this?

I apologize for my English, I'm not a native speaker
  • #2
  • Jul 19, 2016 9:40am Jul 19, 2016 9:40am
Quoting SlownSteadyy
Hello all Maybe this is a stupid question. But if I don't ask, I will never learn I don't understand the rationale of moving the stoploss to BE after the trade is in profit. I will ask my question using a simple example Let's say that I have a sell trade open with 20 pip SL and 25 pip TP. Once the trade is in 24pips profit I move the SL to BE and remove the TP hoping to catch more and more pips. Now if the price goes back up, it will hit SL and the trade will be closed at BE. If the price goes down I will gain more pips. Let's say it hits...
Hello!

Yes..What you say is certainly a way to look at it!

My #1 key is capital preservation--by setting SL to break even, you eliminate chance of loss in case of reversal. This is especially true now with the GBP pairs. Plus you have chance for possible breakout or many more pips.

If you trade multiple lots 3-5 or more (micro or mini is OK) you could TP at 24P with 1/2 of your lots and let the rest run.

You could also take some profit and have trailing stop..This will insure you TP, have no loss, and greater potential on lots that are running..

Or you could TP at 10, 20, 30, 40 pips

There are many strategies for minimizing loss and maximizing gain. Key is to minimize loss whenever you can!

Hope this makes some sense?

PS Your English is great!
  • #3
  • Aug 5, 2016 6:38am Aug 5, 2016 6:38am
Quoting Wigglesworth
{quote} Hello! Yes..What you say is certainly a way to look at it! My #1 key is capital preservation--by setting SL to break even, you eliminate chance of loss in case of reversal. This is especially true now with the GBP pairs. Plus you have chance for possible breakout or many more pips. If you trade multiple lots 3-5 or more (micro or mini is OK) you could TP at 24P with 1/2 of your lots and let the rest run. You could also take some profit and have trailing stop..This will insure you TP, have no loss, and greater potential on lots that are running.....
WOW! I don't know how I missed this reply! I couldn't even find the thread after I posted it

Thank you very much Wigglesworth for your detailed response Now I understand that it all depends on the strategy we use

Thanks again
  • #4
  • Aug 6, 2016 8:02am Aug 6, 2016 8:02am
Quoting SlownSteadyy
{quote} WOW! I don't know how I missed this reply! I couldn't even find the thread after I posted it Thank you very much Wigglesworth for your detailed response Now I understand that it all depends on the strategy we use Thanks again
No problem and my pleasure!
  • #5
  • Last Post: Aug 7, 2016 12:44am Aug 7, 2016 12:44am
Quoting SlownSteadyy
Let's say it hits SL at BE. Now isn't this the same as opening a new trade?

No, if you open a new trade (at BE price) you would lose spread.
0 traders viewing now