 Hey guys, can everyone hear me clearly? Hey Tayfun, nice to see you here again. I can see Wai Chan over here, Christopher. See some familiar names. We got fireflies.ai note taker. Hey Tayfun, nice to see you man. I got Mervin. You guys can hear me, nice and clear. Awesome. I got Naveen, very familiar name. Yeah, who is here not for the first time, right? Yeah, how many times have you attended this take me webinar, right? If you guys can send it in the comment section, that'd be great. So you know in the comment section, there's this part that's just dropped down where you can choose everyone, right? So you can send a message to everyone, not just to hosts and panelists. Everyone else can also see it. Hey Rina, nice to see you, right? Oh yeah, your name is very familiar to Tayfun, right? Yeah, good stuff, good stuff. Nice to see you attend to everything. Alright, good stuff man. I can see a whole bunch of people streaming in. Just going to give it another one minute for everyone to come in. Oscar, nice to see you. Where are you guys tuning in from? Which countries are you guys tuning in from? Bonus prize for anyone who can guess where I am hosting this webinar from, right? Oh, Nepal, nice UK. First time attending webinar tuning from the Philippines. That's nice, right? Okay, and I've been from Malaysia, Tayfun, maybe? Maybe, right? Yeah. Okay, I can see a few people guess. Either you're saying that tuning in. Oh, yeah. Kongwai channels that are from Singapore, alright. Okay, no secret there. Yes, and tuning in from Singapore, right? We got Swani Key asking if there's a certificate of attendance. No, there isn't, right? But in the VIP room, which we should be launching soon. The TickMeal VIP room, right? We should have a little batch that is awarded to people when they attend a certain number of webinars, right? There's something exciting to keep your eye on. The marketing team is working on the landing page for that. So it should be out pretty soon, right? I guess it's the Philippines, right? Okay, David, first time from Nigeria. Sajah from Nepal. Charity from Nigeria. There, yes, right? Nice to see you. Nice to see you. Nice to see you tuning in, right? We got a nice group of guys over here, right? Right, a nice group of people over here, right? In today's webinar, right? It's a little bit of a focus on stop loss and take profit placement, right? Also be touching a little bit on not only the concept but some examples behind it, right? I think it's pretty good, right? If you've ever encountered situations where the price touches your inner trade, price touches your stop loss, right? And then it just reverses and it goes in the other direction of the trade. Or price misses your take profit just by that few kips and then reverses, you know, towards your entry, right? That is usually more of a case of optimising your stop loss and take profit placement. Clement, good question. How do you invite others to join my training, right? I will show you in a bit. There's a link, right? There's a link. I will show it to you guys in a bit. All right? Okay. Now, first things first, right? Disclaimer, everything in this webinar is educational nature so nothing should be construed as investment or trading advice. Please do your own little due diligence before you guys trade, all right? Now, there is a link that I want to send you guys to, right? And that link is, yeah, you can head over to YouTube, take me actually. There is this ultimate forex trading masterclass. Not only me, but it's with my entire team, Jin, Annabel, Tianning, right? I'm going to paste the message over here, right? So, yeah. If you want to watch the previous webinar, please go attend, go to this playlist and you can watch it in sequential order from the top all the way to the bottom. The other thing is that for those of you guys who are asking, how do you tune in to the other webinars, right? This is the link that you want to go to. Hi, Isaac. Nice to see you tune in, right? Yep. This is the link you want to go to. What you can do is you can see all the upcoming webinars in all the different languages, right? You can just tune in to them, all right? Now, Naveen is asking a very interesting question, right? Is the market manipulated so we get our stop-loss hit, right? Short answer to that is no. We think that there is manipulation, but there is more of like a form of smart money trading. Like there are certain levels where you just want to avoid when it comes to putting your stop-losses there, right? Because when you put it there, it goes by different terms. One of it is like magnetic levels, prices tend to be attracted to certain levels, right? And if you happen to put your stop-loss in the crossfire, you're going to get stopped out, right? So it's more of optimising your stop-loss and take profit placement more than the market manipulation because there's no market manipulation, right? The forex market is a trillion dollar market is really, really tough to manipulate it, right? We're not talking about penny stocks, right? We're not talking about the small penny stocks or even the small, sorry? Yeah, the meme stocks, right? You're talking about like squid coin, those of you guys might remember squid coin, right? Or even some of the crypto, some of the crypto coins and the smaller cap crypto coins out there, those, yep, you know, you heard of term will, right? A will can come in, it can manipulate it, right? But you're talking about the forex market, you know, literally the currency that is being used by millions and millions and millions of people, right? It is really, really tough to manipulate, right? Almost impossible. So it's not so much of market manipulation looking at, it's rather the optimisation of your stop-loss and take profit levels, you know? If you can do it properly, you know, you can optimise it quite well, you can avoid getting stopped out, alright? So I do want to touch on a couple of things, right? To this webinar, there'll be two hosts. One, the first is me, right? My name is Desmond Leung, right? Yes, we're doing take profit and stop-loss placement. So my brain just stopped for a while there, right? Yes, take profit and stop-loss placement, optimising it today, right? Run the award-winning research firm, Everest Fortune Group, you know, we're finally for Best FX Research 2019, 2020, 2021 and Best Equity Research for 2020 and 2021. So we usually work with the major financial institutions out there telling them where the markets are heading, but we now have a special partnership with TickMeal where we are bringing you guys the good stuff, the juicy stuff, you know, stuff that will take a trading to the next level, okay? And our, the next host, right, who will be seeing in just about, like, maybe 10 minutes, right, is Annabelle, right? So she is part of the team here at Everest Fortune Group and you might have seen some of her previous webinars previously, right? So she'll be diving in a little bit deeper, right? She shows you the examples, a lot of the examples in optimising your take profit and stop-loss placement, right? Please don't hold back when you're asking her questions, right? Eh, Arky Bong, nice to see you here, man, right? Sorry, sorry. I always see Arky Bong around the place, right? So it's nice to see him tune in here, right? I hope you enjoy today's session, all right? So now, without further ado, let's jump in into the webinar, right? A few things that I want to touch on, right? The agenda for today, and I'm going to pick my handy-dandy pen here, right? Yeah, our agenda for today. You know, why stop-loss and take profits are important. A lot of people, sometimes, you know, they treat they treat the stop-loss and take profit as an afterthought, right? You know, what they do is they spend so much time looking for the entry, you know, that once they pick the entry, they just randomly throw in a stop-loss and take profit, it's almost an afterthought, right? So it's just going to touch on why it's very important, right? We're looking at the anatomy of a trade, you know? Things that dive deeper than just your entry, stop-loss and take profit. We're looking at what's the problem with a fixed take profit and what's the problem with a fixed stop-loss? We'll be introducing some dynamic take profit and stop-loss placements and the concept of risk allocation, all right? Now, this is a very, very interesting part here, right? Many of you guys, right? On Baby Pips, on Forex Factory, right? Maybe you found some trading strategy out there that says, you know, when a moving average crossover happens, right? And when double bottom happens or head and shoulder pattern happens, you know, you put a stop-loss of 100 pips and take profit of 100 pips, right? There is a problem when you're using a fixed amount of stop-loss and take profit, right? We'll be diving into that later, right? If you currently use a fixed stop-loss and take profit, right? That is one of the reasons, right? You know, just a little bit of foreshadowing here. That's one of the reasons why you get stopped out more often or not. Or rather, you know, you notice touches your stop-loss, reverses, misses your take profit and reverses, right? It's all about the fine-tuning, right? It's hard enough to trade Forex. It's high enough to be profitable in Forex, right? So, the last thing we want to do is to neglect some of these really, really important principles that really put the, you know, help you if you're right on a trade, at least let it hit your take profit, right? So, we'll be touching on that in a bit. Okay? So, there's just some of the things that I want to touch on, you know, the importance of stop-loss and take profit levels. The first one is risk management, all right? This really, really important thing over here, right? In short, you know, identify and analyze, accept and mitigate uncertainty, meaning, right? The last thing we want to do is, you know, to take a trade and, you know, take a trade and don't put a stop-loss, right? Yeah, usually, it's the case of people refusing to put stop-loss, right? They're like, you know, I'll just, I'm not sure how many of you guys ever done it, right? You're like, all right, you know, I'm just going to keep my eye on that trade, right? I don't have a stop-loss, but I have a stop-loss in my mind. You know, a lot of people like to do that. They're like, I have a stop-loss in my mind, you know, when price reaches that level, I'm going to adjust my stop-loss. I'm going to close it out, right? Now, if you were trading, right, if you're trading, right, you'll notice that there will always be this uncertainty. You know, this thought at the back of my mind, if you're doing work, you could be traveling, you could be eating, right? And you'd be thinking, oh shucks, you know, it's my position, you know, it has price reached my stop-loss, right? And you know, you keep needing to like flip open your phone, flip open your empty four and just say, oh yeah, I know it's, it's haven't reached there yet, right? And even if it does, you know, at the time when it reaches your stop-loss, your mental stop-loss, do you have the discipline to go in there your stop-loss and take profit levels? You know, you control, you manage your risk. You know that if I forget, if I miss it out, if I happen to be sleeping, if I happen to be in the middle of a presentation, I know that if price reaches my stop-loss, I get stopped out, my risk is control. Okay? So that's an important thing with stop-loss and it allows you to actually go about your day, right? Knowing that you're in a worst-case scenario, you get stopped out, how much of your account it prevents emotional trading, right? There is a popular saying, you know, it's like you fail to plan, you plan to fail. It's very cliche, but it's cliche because there is a truth in it, right? If you do not put a stop-loss, right? And many people, I've seen them, you know, have mental stop-loss, right? They feel like they can just go in there and when the market is at their mental stop-loss, they're just going to put their, they're just going to close off their position. What happens more often and not is that they hold on, they hesitate. Even if you hesitate for that one second, that is emotional trading. Whether you hesitate for that one second, imagine like your entry is over here, right? You expect prices to go up. Your take profit is over here, okay? Your stop-loss is over here. If prices come all the way down and it touches your mental stop-loss, right? Your mental stop-loss. A lot of you guys would be like, yeah, you know, just close it off. But the moment you just hesitate for one second, thinking that price might bounce up, you know, just so that, you know, you don't get stopped out. That is emotional trading. Okay? And there's only one, there's only one place where emotional trading gets you, right? And that's the grave of, you know, revenge trading, the grave of accounts that get blown up. It might, you might get lucky once, you know, price bounce, right? You like, few, you know, my Jedi sensors, you know, help me get out of their trade, you know, I was able to avoid getting stop-loss, right? I was able to avoid getting stopped out. That, you know, place on your emotions. So next time that happens, you know, you're like, yeah, yeah, you know, I previously, I use my Jedi sensors, you know, and if price is just plummet, right? It goes lower and lower and you'll be like, oh man, I should have just closed it off. Then it starts going lower and lower and lower. And then you're taken on a roller coaster, right? Right? And before you know it, what you initially wonder a risk of 1% of your account ends up being 10% of your account, right? So important of a stop-loss level, it instills discipline, right? It tells you that, hey, when you're wrong, you're wrong, right? So, it's important to stop losses. Lastly, it's the important concept of risk to reward, right? So many times, I might ruffle a few feathers here, but I've seen telegram traders and Instagram traders. I call them telegram and Instagram traders because what they do is they put up a nice picture of a Lamborghini on Instagram, they say that and you scroll, you know, a few pictures, they're like, oh, if you enter here, right? If your take profit was 100 pips, okay? If your take profit from your entry was 100 pips, right? And your stop-loss was, your stop-loss was 500 pips. You have a terrible trading strategy, but what most telegram and Instagram traders like to do is they like to show you this part here. Look at me, you know, I made 100 pips while risking 500 pips. So if I get 5 trade, it wipes out 5 of my trades, 5 of my winning trades. A lot of people like to do that, so one word of caution is that when you see Instagram and telegram traders who only talk about the profit that they make, you know, they always like to show you screenshots of their empty account on their mobile. They never ever show you how much they risk on it, just the number of pips of profit that they make, right? If you see that, run like the wind, okay? Run to the hills, you know, I've seen too many people get scam in this kind of situations, right? Because important thing about take profit levels is that if you're only looking at take profit levels, right? You're only looking at the upside. You never look at the downside, right? Using stop losses and take profit helps you exercise the concept of not only the reward that you're getting, but also the risk. You know, what's the risk if you don't have a trading strategy that has 10 pips take profit and it can make me more money than this 100 pips strategy. If my stop loss was, you know, 10 pips take profit, 5 pips stop loss, this gives me a risk reward of 2 is to 1. This gives me, this one here gives me a reward of 1 20, 10x Yes, 10x is the answer, right? 10x Okay, so I don't need 100 pips take profit to be profitable. 10 pips is enough. The proper risk reward is what you want to be looking at and the only way you can get proper risk reward is to have exercise stop loss to use both stop loss and take profits. Okay, some of the ways that you can, right? We'll be showing you some of these examples where's my mouse? Oh, one of it is trend lines. I want to support resistance levels, right? What do I mean by trend lines? You know, it's a little bit unique. Let me see if I can pull up an example over here. I can trend line. Okay. Hmm. Okay. Trend line. For example, give me a second. Okay, so for example, if you're playing a bullish move, what we're going to do is I'm going to look for this where's my bar replay? Okay. This move over here. We're just playing to move up here. I could have a stop loss. I could have a stop loss that follows the trend line. So initially, maybe it's over here. So as price give it a second. Okay. So if my stop loss was over here, if my stop loss was over here, and as price kind of inches up, you know, you can slowly move your stop loss along with the trend line. Right. So as it goes up, as it goes up, as it goes up, you know, you kind of just inch it along the trend line because you are essentially riding the trend. Okay. So let's see how this kind of works out. You know, it goes closer, it goes closer to here, right? But your view is if price touches, the trend line, I can, I will close off my trade. So there you go. In this case, instead of using something like a moving average, if we use like a moving average, maybe a 100 moving average. So in cases where someone is using a 100 moving average as a trading stop loss, a trend line in this case will help you get stopped up faster, locking in more of your profits than using something like a moving average. There are people who also use the Ichimoku, right? They wait for price to break past the Ichimoku cloud over here. So for example, there you go. The next bar, if price breaks this Ichimoku cloud, then they close it off. There are a few methods, right? There are a few methods when it comes to using trend lines, using moving averages like what I'm showing you over here, you know, using moving averages, using Ichimoku, using support and resistance, right? To calculate your stop loss doesn't always have to be like a fixed stop loss and take profit level, okay? Now I can see a question by Luchi, right? Asking what is the timeframe for that scenario? This happens to be a question that I get asked pretty often, you know, what is the timeframe? Let me tell you that the timeframe really doesn't matter, okay? The timeframe doesn't matter because when you're taking a timeframe on a four-hour chart, right? You should be obeying what you're looking at, what the indicators for our chart. Let me let me give you some context. If I was looking at a four-hour chart, right? I'm going to delete everything over here and I was looking at the moving at the Ichimoku Cloud, right? This Ichimoku Cloud is nice, right? You know, I've seen it bounce over here, bounce over here, right? And maybe, damn it, every time I try to probably over here. Yeah, if I'm using the Ichimoku on the four-hour chart, notice that, okay, see? Now, price is right at the age of the Ichimoku, right? It's testing that level right about there. This looks good on the four-hour chart, but if I change it to the one-hour chart, you will have broken way a long time ago. You can see the one-hour chart is broken already. The indicator on the four-hour chart is of course different from the indicator on the one-hour chart. The most important thing is which timeframe are you using for our timeframe to trade. That means that you're using the sensitivity of the four-hour charts. You're using the moving averages that you apply, using the Ichimoku that you apply, using the stochastic that you apply, so you need to obey it. Okay? So, the timeframe really doesn't matter. Rather, if you are trading on a timeframe, stick to it. The last thing you want to do is if you're trading on the four-hour, then you jump in to the five-minute chart, and deeper and deeper and like, oh, man, if you think about it, what you're doing on a five-minute chart is not going to affect your four-hour chart at all. It's so far removed. So, don't get too caught up in this whole concept of multi-time frame. There is a time to use it, and there's a time not to use it. Here at AFG, what we usually do is we go one timeframe higher just to get a gauge of things. We don't try to jump one timeframe lower, two timeframe lowers that just makes things really, really messy. But I do not want to digress too much. But this is some of the methods to calculate your stop loss and take profit levels. The last one is a parabolic SAR. This is more of trailing stop losses. The last few actually trailing stop losses we should be touching on part four of this webinar series where we go into not only stop loss and take profit placement, but trailing stop losses have idea invalidations. Now, the anatomy of trade. Let me see. I know there's one part that I want to touch on. Before, I'll hand it over to Annabelle. When it comes to a trade, most people think it's just the entry that you're looking at. But the truth is that there's an entry, there's a stop loss. There is a take profit. Okay. Before the take profit, there is a partial profit. Okay. Before the partial profit, there's usually a break even. Before the stop loss, there's usually the idea and validation. Beyond the take profit, there might be a trailing. Sorry. It's over here. Trailing loss. Trailing stop loss. Sorry. Trailing stop loss over here. So the concept of anatomy of a trade is an entry. Not only a take profit, not only a stop loss. Right? We're going to advance next week. The week after, sorry, we're going to touch on break even. We're going to touch on partial profit. We're going to touch on idea and validation. We're going to touch on trailing stop losses. When you know to respect the entire spectrum of the anatomy of a trade, you notice that you will be very much at ease when you take a trade because you would have put your entry stop loss take profit and you know you will get a partial profit there. If you reach a certain level, you're going to idea and validate. You have your plan or plan out. It takes the opposite spectrum of if you fail to plan, you plan to fill because in this case you really are planning to succeed. In every single scenario when it goes for you and when it goes against you. We'll be covering more of that in the rest of the webinars. In our Advanced Trade Management webinar series we'll be looking at ideal optimal stop loss take profit placement and she will also be showing you a lot of examples on it. So please do not hold back and ask her your questions. All right. Without further do. Over to you, Annabelle. Okay Desmond. Okay Desmond. Okay Desmond. Terima kasih. Terima kasih. Terima kasih. Terima kasih. Terima kasih, Desmond. Hai, guys. You guys can hear me clearly. Hi, Jake. Hi, hi. Just probably like the second or third session that I have with you guys. Okay. I'll be continuing with the session about take profit and stop loss placement. So just now Desmond has covered the anatomy of trade, right? Because it is as important as your you know, your take profit and stop loss as important as your entry levels because most of the time when we enter a trade most of us are just you know, we place more emphasis and effort on our entry, right? We take a lot of time analysing the charts and then we just enter without forgetting. I mean forgetting our take profit and stop loss placement. So like he has mentioned, there are a lot of different parts to the anatomy of trade. Given the entry, the stop loss, take profit, there is also the break even. Okay. The trailing, stop losses and etc. Just now he has mentioned. So when it comes to taking profit or stop loss, how do you guys actually do it? Do you set percentages or do you do the risk to reward ratio? Let me know in the comment section. So for us what we do here is the ideal and optimal stop loss and take profit placement is most times your trade or the position will come to the major resistance area where you draw all your trend lines, right? So at this area this is where all your fights or all your commotion starts. Okay. So for example, if I'm taking a long position, okay, let's do short. So for example, if I'm doing a short position, let me erase, give me one second. Okay. So for example, if I'm doing a short position here, okay, I took a short. How would you guys draw your take profit and stop loss? Most of the time people will actually draw it along the key levels, right? Because this is where all the commotion happens and people tend to like to draw their lines here. But let's say if you are going to draw your take profit levels here, you might have missed it because prices might actually stop here and bounce off. Correct? So what we suggest is what we do here is we usually take profit before your major resistance level, right? And if you are going to put your stop loss, always put slightly beyond. Okay, for example, if I'm going to take a trade here, a short, I will have a couple more examples later, but I'm just briefly telling you guys how it works. So if you put your take profit exactly on the resistance area, it might be dangerous because price might just bounce off slightly before and hit your stop loss which is very risky. So you tend to just want to give up maybe the one pip or two pips. Okay, just 40, 90% gain. Right, on your take profit and the reason why we put the stop loss slightly beyond is because there might be a lot of commotions happening here and you just want to have that space as a buffer, right? Okay, let's look at some examples. Okay, I'll go to this first. So for stop loss and take profit placement. So we have identified a nice support level here which is the green line. Okay, this is where you will draw your support level. Correct? This will be the line where you draw your support level. Okay. So we buy thinking that price will go all the way up since it's a bullish trend. So since there's a breakout here I would have bought. Right? So our strategy has a fixed stop loss of 100 pips. So for example, if you put a fixed stop loss 100 pips here, which is slightly above your support line. Okay, this is your stop loss. Okay, so imagine if you were to put your stop loss above your resistance line here it would have stop you out of your position if your price reverses. On the other hand, if you put your stop loss beyond your resistance level it would have went up. Okay, there's another slide that's not included here. It would have came here to the magnetic zone which is the okay, what we call it is a magnetic zone because usually price tend to be drawn towards these levels where all your commotions happen, right? This is where all the fights happen. So when prices come here in the magnetic zone and it bounces off your stop loss you are not stopped out yet because there's still buffer. Oops. There's still buffer here. There's still some space for you to breathe, right? So what happened here is it touches the magnetic zone and it bounce off to hit my tick profit. So for tick profit levels usually we do not want to go to the commotion level because it's very risky. We will want to take profit slightly before just to be sure that you pocket the 90%, correct? Okay and maybe let me just talk about the problem with stop loss and tick profit, okay? So the problem with tick profit, fixed tick profit and stop loss just now Desmond has mentioned is some of the channels or webinars they actually tell you to take profit of 100 pips or stop loss of 100 pips once your moving average crosses a certain area but the reason why it's risky is because of this, okay? So for example if this was the fixed 100 pips that you are talking about for your stop loss which is above your resistance your support level is very risky because prices are always attracted to this magnetic zone. Okay? So this is the risk that we see in fixed tick profit stop loss. Okay? You do not want to be so rigid as to always follow what the channels or the mentor say. Okay? You always have to follow what the market is actually telling you as well on the go, right? Because prices always move so you have to be flexible in the sense that you have to adapt and mitigate risk when market tells you otherwise. Okay? So remember when there is a strong resistance area or strong support area you always take profit before. Okay? It's depending on whether you are taking a long position or a short position, right? Because this is for long usually take before but if it's a short position it will take slightly above the key level. Okay? So it's depending on whether you are taking a long or a short position just take your profit or the resistance area or the magnetic zones. Okay? Okay, now another example. So right here we have identified a strong resistance level. Okay? Points touch once, touch twice and most likely if the price are coming up it will touch it three times. Okay? Depending on where the market is hidden. So this is clearly a strong resistance area where I've drawn where price has reacted of twice. So imagine if you have a fixed take profit of 100 pips which is above. Okay? Which is above, slightly above. Okay, let me just write take profit here which is slightly above your resistance line. Okay? What happens next is this is the fixed 100 pips that the program or the channel or the mentorship told you that okay when prices react of this level you should take 100 pips of take profit and 100 pips of stop loss. For example so what happens next is price actually reacted nicely. Okay? bullish bullish came here you think that it will still go further so you are may probably at 90 pips now but then there's still this 10 pips that you're looking for or the channel tells you okay you have to take the full 100 pips what happens here is prices came here reverse okay this is where you will panic, okay wait let me erase okay usually if it comes here people will be very hopeful that they can take the full 100 pips okay since it's only a 10 pips more so people tend to wait and when price reverses okay to back to this bearish candle people start to panic so right here you probably already lose 30 pips okay? and then when there is a bullish candle you will still hope that maybe it will come up and then you lose another 50 pips for example so all in all you only made 10 pips instead of 90 pips so my point here is don't be so rigid to us have to always put your take profit to a fixed level of 100 pips or a fixed percentage okay you have to see where the market is hated as well or all the new information that the market is telling you so the key point is also to always take profit before the resistance level you don't want to wait till it comes to this fighting zone or where the boost and the bear in a in a promotion you just want to take profit before just get out before anything happens okay yep so if you place your take profit level slightly before the key resistance area it would have been a very profitable trade okay so the lesson here is don't blindly follow a fixed take profit target just because forum tells you so always look at the charts always look at what the information and the news are telling you okay so this is another example of the take profit placement let's see okay big swing this will be the resistance that I will place because it's the previous swing high okay we are in a long position seems to created a double bottom or a triple bottom here okay came up okay people will tend to feel that prices will come to this level to test again it is true because this is the magnetic area right but you always have to keep a look out on what the prices are doing so don't don't be so fixated on the fixed take profit okay always take profit before your key resistance area so for example if we took along here this would have been a very very profitable trade you don't have to be greedy to take the full percentage okay so price reverses before the big resistance yeah okay a few pips right here okay you just want to get away or you just want to take profit and move on to your next trade okay so imagine if you don't take here you are waiting for your full take profit level here so when price reverses you will always think that there is a possibility that it might come up so you keep waiting and waiting until this level when it's down already 50% of your original take profit level and then you panic and you you give up your trade here so instead of a full 90% you only probably gain a 40% here okay so just leave the 10% behind always take profit before a major resistance level okay so the lesson learnt here is always place your take profit before key support and resistance okay this is the same these are the same slides I think we'll skip that okay so what is a dynamic take profit placement okay what we mean here is instead of just using your support and resistance levels right which I have shown you the previous times okay this will be your take profit always before and then your stop loss is usually be below beyond okay instead of using just stop loss and I mean sorry instead of just using your support and resistance level dynamic placement also means that you can use other indicators like your in this instance we are using the fit levels for example purposes okay okay so what we are seeing here is that I am looking for example for a short entry here okay okay since price has broken here I am looking for a short entry with my stop loss place here and my take profit level place here okay so this is what we are aiming for I think this is a let me see if I am not wrong this should be 78.6 okay we are looking for an entry level at this Fibonacci 78.6 if I am correct 78.6 Fibonacci retracement level okay so entry it has triggered my entry level right here and it looks like price has rejected this area many times okay and it's pulling back which is in the direction of my position and okay let's see can you guys tell me if let's say we are in a short position here where would you take profit? would you place your take profit at the point of your swing low would you put let's name it A B or maybe this level here level where would you guys place your take profit levels okay given a normal situation if I am a beginner to trading I would actually put my take profit at A okay a standard answer would be A because that is my previous swing low and we know that prices tend to come to this magnetic levels to test again but what we mean by dynamic placement is that if I draw a Fibonacci projection forward okay I realise that it tells me that this is my 78.6% projection level this is if you guys miss out any Fibonacci webinars you can visit the link or the ThickMill website under Fibonacci we have a series of webinars that we teach Fibonacci levels okay so for projection wise it tells me that hey I am at a 78.6% projection level here so instead of putting my take profit at 84.668 I actually moved it up to my 78.6% projection level okay I shifted it up slightly which is which also follows our logic of taking profit before the resistance level correct so it actually touched my 78.6% nicely and reverses to my stop loss okay and also notice that for stop loss wise always put it slightly above okay so the point being here is that dynamic stop loss and take profit placement by using Fibonacci usually we will use projection level but you can use other indicators like your extension or extensions as well so this actually help me a lot instead of putting my take profit below this is the exact level where it bounce off okay so remember always take profit before and you can use indicators like your Fibonacci tool to help you to assist you for stop loss placement is the same thing what we see here is we are looking for an entry we take profit here and I will stop loss here so what what happens here is there is a the reason for the entry level is because it's 100% projection and we are looking for a shop since it's a downward trend so right here what we did was the entry my position was triggered here and what we did here was we drew a Fibonacci retracement tool wait give me one second what we did here is we draw the Fibonacci levels and we notice that there is a minus 27 0.2 expansion and then it coincides with what we always have said to put your stop loss above your resistance level so this was the resistance level that we were looking at here if I do not know or if I were a beginner this is where I would usually put my stop loss we have been through this stage before usually we will put our stop loss and take profit levels at the resistance area but what we are teaching you now is you have to put your stop loss at the resistance level so what this Fibonacci tool help me is to identify and define exactly where I should put my stop loss so this is my expansion levels and I have moved my stop loss from A to B so what happened was since we know that this is a retracement zone you want to put it slightly off on it as well because this is where the prices might touch this level and reverse these are all the retracement levels so you have to be careful with them place it slightly beyond them because Fibonacci told me that there is a negative 27.2% retracement level here where my price might be attracted to and bounce off so you have to be careful place your stop loss above so what happened here was it really came to this level and reacted off okay so far if you guys have any question let me know let me read some of the questions here okay please share ask the link about Fibonacci okay I will cut and paste the link here later on what currency pair is that okay this one I am not to show which currency pair because this is just an example and it might not doesn't matter which currency it is because we are just showing you the example on how we use a Fibonacci level to help take profit and redefine the levels can I see the web okay I will cut and paste later right here okay let's move on okay so for risk allocation wise what we mean by that is usually when you place your risk reward what would be an ideal risk allocation that you put let me know if you guys put between 1-3, 5%, 10% or in or you guys allocate for risk okay most of your insert 1-3% i think it will be usually it will be between these two okay this is the rarest okay or some of you don't put at all as well okay it happens okay I see a lot of 1-3 okay there's also lesser than 1, it's normal it's all depending on your risk reward okay so risk allocation if I were to give you $1,000 right now right and ask you to bet on this roulette all of us have seen the roulette table before so I will ask you to I give you $1,000 and I ask you to bet on black for example how much would you actually put to bet on black winning would you risk the full $1,000 because it's free would you put $100 that is 10% $10 $200 how much would you risk okay given that you are given $1,000 okay I say $50 $30 okay all within the range of 1-3% okay but $32 black instead would your answer have changed would you put all in all in I would do that or would you put the same as before $10 or $5 okay I see very different answers okay but most of us most of us would actually put most of the money here because the odds are very good so my point being here is that for risk allocation okay the standard size would be usually 1-5% depending on what's your risk appetite but the point being here is that if my setup is extremely good and the odds favor me so well like this I would increase my risk allocation which is very logical because my risk okay so the point being if your setup is extremely good you have all your Fibonacci levels you have your Confluent Zone your Stochastic your RSI all tells you that USDJPY is going to reverse I would put maybe more double up 10% okay it's all depending on your setup okay okay lot sizes so for those of you who are using MT4 you have to key in the lot sizes by yourself and what we see here is okay for example account size 50,000 the currency pair that you are trading and then you have to calculate what is your risk level so for most of us if you are between 1-3 USDJPY and then you come here to to place your stop loss and your profit levels so for stop loss wise imagine if you are putting A50 stop loss 1.1 lot is $50 and 1 lot is $500 which is 1% of the account so what is being said here is how much your risk actually affects the lot size so if you do not know how to calculate your lot sizes you can log on to websites like you can just google it for example let me see if I can find it so for example if you there are a lot of websites that say calculation of lot sizes because for MT4 users we have to key in the exact size and if you do not know you can go to for example babypips let's try okay just go to any one of it okay USD account balance 10,000 for example imagine if you were to risk only 1% your stop loss 50 50pips currency pair okay so this is the amount that you are risking and this is the standard lot size okay so if you do not know how to calculate you can just come to babypips and you can key in all the details here okay okay so this is a 50pips stop loss 90pips take profit and this is a 20pips stop loss and 36pips take profit which one do I make more is it A or is it B this one looks like it has made me a lot of money i mean 90pips take profit let me know in the comment section which one do I make more do I make more in A or do I make more in B yeah some answers some say A okay so your risk to reward is 50 and then here is if you do the basic calculation let me try both actually give you the same answer okay if you divide accordingly actually is the same they make me the same amount okay the same R2R so what we wanted to say is not about the number of pips you made is about the risk to reward of your trade as Desmond has mentioned at the start of the webinar of the session where he say that if there are a lot of traders that tells you that they make 100pips but actually maybe they have a 600pips stop loss 100pips take profit and then 600pips stop loss that doesn't make sense at all so it's not about the number of pips you made but rather the R2R that you have okay let me just cut the it's the session okay for fit levels okay so for those of you who missed out on the fit levels you can rewatch on youtube or you can come to this our past webinars let me check it out it should be here okay it should be here i will just direct you guys to our youtube channel okay let me cut and paste can you guys see okay so i have i have pasted in the past the youtube channel where we have all the previous webinar recorded so if you guys missed out any of it you can go there and take a look okay if you want to view the recordings you can go to youtube and check it out it's all uploaded there okay so this will be the end of my session today i hope you guys have learnt something from us okay do let me know if you have any questions in the next session and i will see you guys soon take care