How to set the right stop loss and take profit
I've only been trading for about six months and learned the strategy in a trading club. The club recommends setting the stop loss at 1% of your account size and the take profit at 0.1%.
However, this ratio is becoming increasingly frustrating. While it does result in a very high hit rate, if a few trades go wrong, you feel like you'll never be able to recover.
How do you set your stop loss and take profit?
Yeah, I’ve been trading for a while now and used to follow a similar setup. High win rate felt good at first, but a few losses would wipe out weeks of gains, super frustrating.
Now I focus more on risk-reward. I usually aim for at least a 1:2 ratio, risking 1% to make 2%. This way, I don’t need to win every trade to stay profitable.
I place my stop loss where the trade idea is clearly wrong (like below support), not just a fixed %.
For take profit, I look at the next key level or target that gives me a good reward.
Hope that helps, it gets easier with experience!
