I just realized that many new traders are still not clear about the basic orders when trading. Today, I want to share about 3 concepts that anyone who wants to trade professionally must understand clearly.

First is Entry – it is your entry point, meaning the price at which you decide to buy or sell. If you buy and then sell exactly at the Entry point, it’s considered a break-even.

Next is Stop Loss, also called a cut-loss order. This is very important because it allows you to automatically close your position when the price drops to a level you cannot tolerate. For a Buy order, the Stop Loss must be below the Entry. If you Sell, then the Stop Loss must be above the Entry. I recommend not placing the Stop Loss too close to the Entry to avoid being wiped out by market volatility.

And what is TP? Take Profit is an automatic profit-taking order, helping you lock in profits when the price reaches your target. For a Buy order, TP must be above the Entry. For a Sell order, TP must be below the Entry. The way to set TP and SL varies depending on your strategy.

I see a good tip is to set the Stop Loss smaller than the distance from Entry to Take Profit. That way, when you trade multiple times, the profitable orders can offset the ones that hit the Stop Loss.

However, there are also risks. Sometimes, the market moves strongly, wiping out the Stop Loss and then returning to the Entry point or even surpassing the Take Profit. Another case is when your position looks good, but it gets stopped out at the Take Profit, and the price continues to rise even higher. These situations are quite common, especially when you set the Stop Loss too close to the Entry.

But despite the risks, setting Stop Loss and Take Profit is still extremely necessary, especially when trading Futures. Ignoring Stop Loss can lead to losing your entire account. The key is to learn how to manage risk properly, usually from 0.5% to 1% of your account per trade.

When you start trading more professionally, setting Stop Loss and Take Profit not only saves time but also reduces psychological pressure. You don’t need to constantly monitor your trades, and you can be more confident knowing that risks are controlled. Eat less but do it sustainably—that’s the key to surviving long-term in this market.