TP (Take Profit) and SL (Stop Loss) when and why use them
These two tools that eToro has made available to us are very useful to manage our investments and must always be set in a certain way, following rules that are partly based on my method of trading and partly on the price policy of each market.
For SL (Stop Loss) we will always set the maximum value of loss and that is -100% because in online trading we are following the 3 basic rules. One of these says we only trade with the money we do not need, and therefore can afford to lose it all.
Regardless of the leverage used and the type of market where we will operate, we will always put the SL at -100% because this also protects us from the volatility of some markets.
An important thing that must always be considered for the SL is that sometimes we can find ourselves in a position of good profit and then we can move the SL in green, thus guaranteeing us a profit if the position were to touch the price set by us.
As for the TP (Take Profit) we can not leave the base price indicated by eToro which is + 50% because it is taken for granted that we know the market where we are operating and that we know how much the position will arrive and we will let profit run.
With the TP we can also set it very far from the price we want to achieve, for example at + 1000%, then going to close the operation manually as soon as we are satisfied with what we are earning.
There is also an automatic option provided by eToro which is called TSL (Trailing Stop Loss) and in practice follows the operation in profit keeping a distance that we can set ourselves and this mechanism will then automatically close the position if the price should vary suddenly.
The system is suggested for those who do not like to perform all the trading operations manually, I sincerely do not suggest it even if it works and is effective. I always recommend that you follow your own operations to learn the price policy of the market we are studying.https://www.jarodd76.club/tp-take-profit-and-sl-stop-loss-when-and-why-use-them/https://www.jarodd76.club/wp-content/uploads/2018/03/Profit.jpghttps://www.jarodd76.club/wp-content/uploads/2018/03/Profit-150x150.jpgeToro PlatformThese two tools that eToro has made available to us are very useful to manage our investments and must always be set in a certain way, following rules that are partly based on my method of trading and partly on the price policy of each market. For SL (Stop Loss)...Jarodd76Massimiliano De Falco[email protected]AdministratorJARODD76.CLUB