Suppose you are new in Forex trading, in that case you could probably in confusion about take-profit orders. There certain situation in trading when a newbie can't understand about their order closing time.If you are new to Forex trading, then I would suggest that you read the entire article as there is a lot of information in here that you need to know.
Why Place Take Profit Orders?
This is especially useful when you are not sure whether or not the resistance is going to be broken. The reason to use a take-profit order is to protect yourself from potential losses. If you place a take-profit order, it is possible that the market may continue to drop and you will miss out on the profits. However, if the market continues to fall, your order will be filled and you can then close out your position at a higher price. In both cases, you still make money.
When you are trading against the trend, it is wise to place a take-profit order so that you can protect profits. However, it is important to make sure that the take profit order is placed at the right level. If you place it too early, you could miss out on the move entirely.
The second big determining factor is your account size
If you have a smaller account, a stop loss is not an option. As you have seen above, a stop loss is a great tool that will protect your capital. If you place a stop loss at a price that is too high, you will be stopped out in the market. This will cause a loss that you will have to cover. If you place a stop loss at a price that is too low, you will miss a potential profit and be forced to buy back in at a lower price.
The other way to trade against the trend is to be on the short side of a trend. In this case, you will make money when the trend turns against you and you sell into the market. You are going to face resistance when approaching the area where the trend has turned against you. There may be a lot of buying pressure that is coming from the long side of the market. This is why you might want to use a stop-loss order to protect yourself against the potential losses in this case. As you can see, it really depends on your position and how you are trading against the trend. If you are trading with the trend, then take profits and exit when it turns against you.
You have to be aware of your trading psychology when placing take-profit orders. It is possible to use them as a tool to make quick profits, but you have to be aware of the fact that they do not give you the full picture. You should allow your trades to develop over the long haul, not as a tool to make quick profits.