Setting a stop loss is an essential part of trading in the forex market. The stop loss is a mechanism that allows traders to protect themselves from significant losses by automatically closing their position when the market moves against them. In this article, we will discuss how to set your stop loss before sending a market order on MT4 @ Forex Factory.
Before we dive into the details, it is essential to understand the concept of stop loss. A stop loss is a predefined level at which a trader will exit a trade if the market moves against them. It is a risk management tool that can help traders avoid significant losses. When a stop loss is triggered, it will automatically close the position at the best available price.
Now, let’s look at how to set your stop loss before sending a market order on MT4 @ Forex Factory. The first step is to open the MT4 trading platform and navigate to the ‘New Order’ button on the toolbar. Once you click on the ‘New Order’ button, you will be presented with a trading window.
In the trading window, you will see various fields that you need to fill out before sending your market order. The first field is the ‘Symbol’ field, where you need to select the currency pair that you want to trade. The next field is the ‘Volume’ field, where you need to enter the size of your trade.
The next field is the ‘Stop Loss’ field, where you need to set your stop loss level. To do this, you can either enter the price manually or use the ‘drag and drop’ feature. The ‘drag and drop’ feature allows you to set your stop loss level by clicking and dragging the red line on the chart to the desired level.
It is essential to set your stop loss level based on your trading strategy and risk tolerance. Generally, traders set their stop loss level at a level where they are comfortable with the amount of risk they are taking. For example, if you are trading with a $1000 capital and are willing to risk 2% of your capital on a trade, your stop loss level should be set at $20.
Once you have set your stop loss level, you can proceed to fill out the other fields in the trading window, such as the ‘Take Profit‘ field and the ‘Comment’ field. Once you have filled out all the required fields, you can click on the ‘Sell’ or ‘Buy’ button, depending on whether you want to enter a long or short position.
In conclusion, setting your stop loss before sending a market order on MT4 @ Forex Factory is a crucial step in trading. It is a risk management tool that can help traders avoid significant losses. To set your stop loss, you need to open the trading window, enter the necessary details, and set your stop loss level based on your trading strategy and risk tolerance. With the right stop loss level, you can trade with confidence and minimize your risk of losses.
