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Moving The Stop Loss

Forex Investing Live Signals: Moving The Stop Loss

Here at Forex Investing Live we apply what we call “Stress Reducers”.  Basically, if a trade goes in our favor we will move the stop loss to breakeven to eliminate risk or lock in profits so the worst that can happen is we make some money.  Once the stop loss is moved into a position to eliminate risk or lock in profit, trading becomes a lot less stressful as there is no longer any risk on the trade.

I want to talk a little about what instructions are given and how to know where to move the stop loss.

Signal Instructions For Moving The Stop Loss

If you check the chart and see instructions like this:

(2/15) Move Stop Loss To @ +10 Pips

You do this:

On that date (2/15), you would move your stop loss to a price level that locks in 10 pips of profit.

(2/16) Move Stop Loss To @ +95 Pips

You do this:

On that date (2/16), you would move your stop loss to a price level that locks in 95 pips of profit.

NOTE: The reason we do not give the exact price level to where you need to move your stop loss is because everyone is getting in at slightly different price levels.  Subscribers login and place the trades at slightly different times than I place trades (which of course is done first).  This means we are not in the trade at the exact price level, so the price level to lock in the number of pips indicated on the chart is going to be slightly different.

As a result, each subscriber is going to have to calculate this exact level for themselves.

How To Calculate The Correct Price Level To Move Your Stop

I have already done a blog post on how to calculate stop loss and take profit levels when entering a trade.  You can read this blog post here: How To Calculate Stop Loss And Take Profit Levels.  There is helpful information there.

For NON-JPY Pairs

Price: 1.1234 / Move Stop Loss To @ +10 Pips

For A BUY Trade With Entry: 1.1234

New Stop Loss: 1.1234 + 10 = 1.1244

For A SELL Trade With Entry: 1.1234

New Stop Loss: 1.1234 – 10 = 1.1224

Note: A lot of brokers show price for non-JPY pairs with 5-decimals.  For example, 1.12345.  But when calculating pips, you are not looking at the last number in price (1.12345).  The last number is a fraction of a pip.

For JPY Pairs

Price: 123.45 / Move Stop Loss To @ +10 Pips

For A BUY Trade With Entry: 123.45

New Stop Loss: 123.45 +10 = 123.55

For A SELL Trade With Entry: 123.45

Stop Loss: 123.45 -10 = 123.35

Note: A lot of brokers show price for JPY pairs with 3-decimals.  For example, 123.456.  But when calculating pips, you are not looking at the last number in price (123.456).  The last number is a fraction of a pip.

So, that is about it.  Moving your stop loss to eliminate risk or lock in profits is always a good thing.  It means the trade is going in our favor!  Now you know how to calculate where to move your stop loss based on where YOU got into the trade.

Moving The Stop Loss In Metatrader4

Metatrader4 is the most popular trading platform.  Most brokers have this platform available for free.  And MT4 is the platform I use to trade.  So, let’s go over how to move the stop loss in the Metatrader4 platform.

There are two ways you can move your stop loss in Metatrader4. Let’s go over these two ways:

Changing Stop Loss Level Manually: You can change the stop loss level manually by following these instructions…

  • Right click order in the Terminal Window
  • Choose “Modify or Delete Order”

A box will pop up where you can change the Stop Loss level (as depicted in the photo)

Change Stop Loss Level By Dragging And Dropping: It is also possible to move the stop loss line directly on the charts to where you want to move the stop.  Here are the instructions…

  • Left Click and HOLD the Stop Loss Line
  • Drag the line to where you want the new stop to be
  • Release the button

Note: There is a counter of both money and pips on the left hand side of the line to help you determine where you want the new stop loss to be.

About the Author

Edward Lomax

Edward LomaxEdward Lomax is a Forex blogger and educator. Originally from the East Coast of the United States, he currently lives in Chile with his wife. CLICK HERE FOR FREE 14 DAY TRIAL OF FOREX INVESTING LIVE SIGNALSView all posts by Edward Lomax

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