# What is Entry in Forex and Crypto? Guide to Setting Stop Loss and Take Profit Orders

When you start trading on Forex or Crypto exchanges, understanding what Entry is becomes essential. Entry is not just the moment you open a position; it’s the foundation of your entire risk management strategy. This article will help you master three important concepts: Entry, Stop Loss, and Take Profit — the three pillars of professional trading.

Understanding the Entry Point — The First Step of Every Trade

What is an Entry? Simply put, the entry is the point where you decide to buy or sell an asset — the price at which you initiate a trade. It signals the start of any transaction, whether you’re trading Forex, stocks, or cryptocurrencies.

When you open a position at the entry point and close it exactly at the same level, you break even — neither profit nor loss. From this entry point, your entire risk management strategy is built. Deciding where to place your Stop Loss or take profit depends on your entry.

How to Determine Stop Loss — Protect Your Account

Stop Loss (SL) allows you to automatically close a position when the price hits a pre-set loss level. It acts as a shield to protect your account from unforeseen risks.

How to set a Stop Loss:

• For a Buy (long) order: The Stop Loss price should be below the Entry price. For example, if you buy at 100, set SL at 98 or 97.
• For a Sell (short) order: The Stop Loss price should be above the Entry price. If you sell at 100, set SL at 102 or 103.

Important note: Don’t place your Stop Loss too close to the Entry. During strong market volatility, tight SL levels can be triggered prematurely — only to see the price reverse afterward. Keep a safe distance, around 1-2% from the Entry, to avoid being stopped out unnecessarily.

Take Profit — Smartly Lock in Profits

Take Profit (TP) allows you to automatically close a position when the price reaches your target profit level. It’s a way to lock in gains when the market moves favorably.

How to set a Take Profit:

• For a Buy: The TP should be above the Entry price. If Entry is 100, TP could be 105 or 110.
• For a Sell: The TP should be below the Entry price. If Entry is 100, TP could be 95 or 90.

A useful tip from experienced traders is to set a smaller Stop Loss relative to your profit target. For example, place SL at 1% below entry and TP at 2% above. This approach helps offset losing trades with larger winning trades.

Common Mistakes When Placing Orders

While Stop Loss and Take Profit are very useful, there are two frustrating scenarios you might encounter:

Stop Loss Hunting: During strong market swings, your SL might be triggered, only for the price to reverse back into profit territory. This is common, especially if your SL is too close to the Entry.

Missing out on profits when TP is hit: Sometimes you enter a great position, but the TP gets hit, locking in profits just before the price continues to rise. You might regret not capturing the full move.

However, these drawbacks shouldn’t discourage you from using Stop Loss and Take Profit. Instead, they are skills to develop through practice.

Why Are Stop Loss and Take Profit Important in Trading?

Save time: Once you set SL and TP, you don’t need to monitor every trade constantly. The system handles it automatically.

Reduce psychological pressure: Knowing your account is protected gives you peace of mind. Most professional traders control risk at 0.5-1% per trade.

Prevent account wipeout: Especially in Futures trading, neglecting to set a Stop Loss can lead to losing your entire account in a moment. This is the most critical reason to use these tools.

Conclusion

Understanding what Entry is isn’t just theoretical — it’s the foundation of all your trading decisions. Once you choose your Entry point, setting Stop Loss and Take Profit helps you build a disciplined trading system.

Remember, professional trading isn’t about gambling with high risks; it’s about sustainable business with clear rules. Setting SL and TP for each trade is the first step to becoming a true trader. Trade smart, stay consistent — that’s what all successful traders know.