Qazi Forex TipsIn this lecture
- Setting stop loss and take profit with support and resistance
- Using multiple take-profit levels
- Closing half of a trade in profit
- Partial close of a running trade
I set stop loss and take profit from support and resistance, use more than one take-profit level, and close half of the trade once it is in profit.
From the lecture
A fixed risk on every trade and a stop loss you place first. Protecting the account comes before everything else.
How Dr. Qazi teaches
Lesson notes
Stop loss: where the idea is wrong
Put the stop loss where your trade idea is proven wrong, not at a random number of pips. For a buy, that is usually below the support zone or the last swing low; for a sell, above the resistance zone or the last swing high.
Add a small buffer for the spread and for wicks, especially on Gold. Never move the stop loss further away once the trade is open.
Take profit: before the next wall
Set the first target just before the next opposing level: the next resistance for a buy, the next support for a sell. Price often reacts there.
Check the reward against the risk. If the next level gives less than 1:1.5 or 1:2, the trade may not be worth taking.
Multiple targets and closing half
- TP1 at the nearest level: close part of the position (for example half).
- After TP1, many traders move the stop loss to break-even so the rest of the trade cannot become a loss.
- TP2 at the next level lets the remaining part ride the move.
The trade-off: closing half early lowers your average reward. Use it when the next level is strong, and keep your rules the same on every trade so your results can be measured.
Khulasa (Roman Urdu / Hindi)
- SL wahan lagayein jahan aap ka trade idea ghalat sabit ho: support ke neeche ya swing low ke neeche.
- TP agle mukhalif level se thora pehle rakhein.
- TP1 par aadhi trade band karein aur SL break-even par le aayein.
- Trade khulne ke baad SL kabhi door na karein.
Questions
How far should the stop loss be?
Far enough to sit beyond the support or resistance that protects your idea, plus a small buffer for spread. The distance then decides the lot size, not the other way round.
Is closing half a trade in profit a good idea?
It reduces stress and protects profit, but it also lowers the average reward. Decide the rule in advance and apply it on every trade.
What is a good risk-reward ratio?
Many traders aim for at least 1:1.5 or 1:2, so a minority of winning trades can still cover the losses.
Should I use a trailing stop?
It can protect profit in strong trends; set it by structure or ATR rather than a tiny fixed distance.
What is break-even in trading?
Moving the stop loss to the entry price so the trade can no longer lose (apart from costs).
Can I trade without a stop loss?
It is not recommended: one unexpected move can wipe out many winning trades.
Related lessons
Money management plan: grow a small account step by stepPrice Action Basics
Support and Resistance: how to draw it, and why it failsPrice Action Basics
How to identify and avoid false breakoutsEducation only, not financial advice. Trading forex, Gold and CFDs carries a high risk of loss. Examples are for learning; test any method on a demo or in a simulator before using real money.