Although it’s said that FXCM Markets Metatrader 4 can be random, even if you did your Technical Analysis very well and checked your news at the same time, still the Market went against your trade. That is no problem, because you realized what happened and ended your trade prior to any additional loss. In case, you did not realize this because you were looking at your system. And the market surged and made your account balance zero. The market could move the wrong way when it reaches your desired point. If you’ve been out of your trading system even for a short time, or to just grab a coffee, your profit can become void.
It is important to always use stop loss and take profit limits in your Forex Trading orders.
Stop loss: This is the maximum price that you can accept for an order in case the market goes against you. The stop loss helps protect your account in case the market makes a large move.
Take Profit: These are the limits that you place on your trades to ensure that they end when you reach your target profit. If the market hits your desired level, but then reverses direction in the opposite way, you can secure your profits.
If you want to know more about the trailing stop, click here. Your stop loss will follow the direction of the move in price.
You can set the Trailing Stop at 10 pips, while setting your Take Profit to 30 pips. When the market makes a 20-pip move in your favor, and then reverses direction to the contrary, the Stop Loss must also be moved by the same amount. Now, your Stop Loss is 10 pips over your original entry. You will still be in profit if the stop loss is reached. The trailing stops will help you to make profit even when your target Take Profit isn’t reached.