Opening a trade is easy. The hard part is deciding beforehand where to cut your losses and lock in your profits. That's what stop-loss and take-profit orders are for.
Stop Loss automatically closes a position when the price reaches your predefined loss level. Take Profit does the same when the price reaches your profit target.They don't predict the market but help you stick to your trading plan when the market moves fast, and you're tempted to wait a little longer.
The new LiteFinance article explains how to set SL and TP, why they shouldn't be placed arbitrarily, and how to use support and resistance levels, volatility, and the Risk/Reward Ratio.
