Take profit/stop loss

[Vera42]

Hello guys, I am new at this, Can you help me? Which one is better to set- stop loss or take profit and why? 

[Michael Maggi]

Apples and oranges:  they have different functions and how you use them depends on your trading style.

Stop Loss will get you out of a trade at a price if the prices moves AGAINST the direction you want it to go in.  You can put a STOP LOSS at a position where you limit your loss or move it closer to the actual price if the price moves in your direction and you want to try and make sure you keep some of your profit if the prices moves against you.  The STOP LOSS is set below the current price if you are in a long position or above the current price if you are in a short position.

TAKE PROFIT is a target price that you have to exit a trade at a certain price.  You put the TAKE PROFIT the opposite of the STOP LOSS: above the current price if you are in a long position and below the current price if you are in a short position.  

You can use both on each order.  The trick is to decide where to put either order.

You should do a lot of trading on a DEMO account before you try risking real money and you will see how they operate.  Check the ARTICLES section of this website for descriptions of strategies and check out YouTube for trading examples. 

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Stop Loss and  Take Profit are two opposites on your bid or  Ask price when trading. Take Profit speaks for itself ,profit made on trade. Stoploss, when your trade is against the direction of current brokers. In order  that you do continue in loss, stoploss helps in minimizing continuous in your current trade  whether it  bid or ask trade.Otherwise ,  you left with money to  continue  the trading.