🛑 What Is Stop-Loss (SL)?

A Stop-Loss is an automatic exit point that closes your trade when the market moves against you.

🔹 Example: If you buy EUR/USD at 1.1000 and set a stop-loss at 1.0950, your risk is limited to 50 pips.
Instead of watching your trade fall deeper into loss, the SL protects your account.

✔ Benefits of Using Stop-Loss

💰 What Is Take-Profit (TP)?

A Take-Profit automatically closes the trade when your target profit level is reached.

🔹 Example: If you buy GBP/USD and set TP at +70 pips, the trade closes automatically once that profit level hits — even if you're offline.

✔ Benefits of Using Take-Profit

🔁 SL & TP — The Perfect Risk-Reward Balance

Successful trading is not about being right all the time — it’s about having a positive risk-reward ratio.

📌 Example of good Risk-Reward:
Risk 30 pips (SL) → Target 60 pips (TP)
Risk-Reward Ratio = 1:2

This means even if you win only 40% of trades, you can still become profitable.

🧠 Pro Tips for Using SL & TP Effectively

✔ Always place SL based on analysis, not emotions
✔ Avoid extremely tight SL — allow market breathing room
✔ Set TP at realistic market levels (support & resistance/fibonacci etc.)
✔ Never move SL further away out of fear
✔ Let TP hit — don’t close early unless strategy requires it