Buy, Sell, Stop Loss & Take Profit

Before placing a trade, there are four basic things every trader should understand:

• Buy (Long)

• Sell (Short)

• Stop Loss (SL)

• Take Profit (TP)

Buy Trade (Long)

A buy (long) trade means you believe the market is going to move up. When buying:

• Your entry is where you buy.

• Your stop loss goes below your entry.

• Your take profit goes above your entry.

If price moves up, you make profit. If price moves down and hits your stop loss, the trade closes automatically to limit your loss.

Sell Trade (Short)

A sell (short) trade means you believe the market is going to move down. When selling:

• Your entry is where you sell.

• Your stop loss goes above your entry.

• Your take profit goes below your entry.

If price moves down, you make profit. If price moves up and hits your stop loss, the trade closes automatically to limit your loss.

What is a Stop Loss?

A Stop Loss (SL) is your safety net. It automatically closes your trade if price moves too far against you, helping protect your account from larger losses. Every trade should have a stop loss.

What is a Take Profit?

A Take Profit (TP) is your planned exit. When price reaches your target, the trade closes automatically and secures your profit. This helps remove emotions and keeps you disciplined.

Quick Recap

Buy (Long)

• Profit if price goes up.

• Stop Loss goes below entry.

• Take Profit goes above entry.

Sell (Short)

• Profit if price goes down.

• Stop Loss goes above entry.

• Take Profit goes below entry.