Take Profit and Stop Loss: Effective Strategies for Managing Risk and Making Profits**
### 1. **Taking profit in percentage**
Taking profit by percentage means that you set a profit target based on a certain percentage of the current price or your entry price. This method allows you to set the profit level in a clear and organized way.
**How do you define it?**
- Determine the percentage you want to win. For example, if you set 10%, you raise your target by 10% of the price you entered at.
- **Example:** You bought a currency at $100 and want to make a profit of 10%, so your target would be $110.
### 2. **Stop Loss in Percentages**
Stop loss by percentage means you set a loss limit based on a percentage of the current price or the entry price. This method aims to protect you from large losses.
**How do you define it?**
- Determine the percentage you can bear as a maximum. For example, if you can bear a loss of 5%, you stop the loss at a price 5% lower than the entry price.
- **Example:** You bought a currency at $100 and set a stop loss of 5%, meaning the deal will stop if the price reaches $95.
### 3. **Strategies for mixing take profit and stop loss ratios**
**Risk-Profit Ratio:**
Make the profit percentage greater than the loss percentage. For example, if you target a profit of 10% and a loss of 5%, this means that you are targeting a profit of twice what you are risking.
Taking profit and stopping loss in percentages helps you manage risk effectively and achieve your trading goals without randomness or emotion.