Stop loss issue

ngocminh192003 · **Joined:** Fri Sep 18, 2009 11:02 pm **Posts:** 1

Dear Vahid,

I have read your article about take profit and stop loss, i find it hardly for me to calculate for my $200 with the leverage is 1:500. if I do as you advise that take 2% risk = $4, in this case, how should I take stop loss and take profit? Please explain to me. Thanks alot.
Minh

Michael · **Posted:** Sun Dec 13, 2009 10:14 am

minh

If your risk per trade is $4 and the stop loss is 50 pips then your trade value per pip must be 400/50 = 8 cents.

Have a look here for more info
http://www.forexoma.com/money-management-in-forex-trading-how-to-manage-your-money-in-forex

Michael

Forexoma · **Joined:** Sat Jul 04, 2009 9:07 pm **Posts:** 1250

Michael wrote:

minh, If your risk per trade...

Thanks Michael

Forexoma · **Joined:** Sat Jul 04, 2009 9:07 pm **Posts:** 1250

Hi Minh,

You calculate your position size based on the stop loss size and your risk percentage. You don't calculate the stop loss and target based on your risk percentage, account size, leverage and ... . Please read the article that Michael recommended. Everything is explained there.

Stop loss issue

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