I just realized that many newcomers to the market do not understand the basic orders when trading. Today, I want to share some experiences about what entry is and how to properly manage risk.

First is entry - your entry point. It is the price at which you decide to buy or sell a certain asset. If you close the trade exactly at the entry, then it is a breakeven case. This is basic but very important because it is the foundation for all subsequent decisions.

But knowing what entry is alone is not enough. You need to understand Stop Loss - or cutting losses. This is an automatic order to close your position when the price hits a specified level, helping you minimize losses. When you buy, the Stop Loss must be lower than the entry. When you sell, it must be higher than the entry. But don’t set it too close to the entry, because strong market volatility can wipe out your Stop Loss.

Take Profit is similar. It is an automatic profit-taking order when the price reaches your target profit. For a Buy order, Take Profit must be higher than the entry. For a Sell order, it must be lower than the entry. A good tip is to set the Stop Loss smaller than the Take Profit relative to the entry. This way, the profit-taking orders will offset the losses from Stop Loss.

Pre-setting these two orders has many benefits. You save time because you don’t have to constantly monitor the trade. The pressure is also reduced when the take profit and stop loss levels are predetermined within an acceptable range, usually 0.5 to 1% of the account. Profits are also optimized with this strategy.

However, it’s not always smooth sailing. Stop Loss hunting is a common issue, especially when the market is highly volatile. You might get your Stop Loss hit, only for the price to return to the entry or even surpass the Take Profit. Sometimes your position looks perfect, but when it hits Take Profit, the price goes further, making you regret.

But despite these risks, setting Stop Loss and Take Profit is still extremely necessary. Especially when trading Futures, without Stop Loss, you could blow your account. I always say, aim for small but sustainable gains—that’s the key to success.

When you want to trade more professionally, Take Profit and Stop Loss are two mandatory orders for each trade. They help you save time and increase efficiency in every order. Don’t overlook these basic tools.