Decide the exit before the entry
A stop loss closes the trade automatically at a price where your idea is proven wrong. A take profit closes it where the idea has played out. Both are set in MT5 when you place the order, or afterwards by dragging the line on the chart.
Where the stop goes
Put the stop where the market structure says the idea failed, then size the position to fit — never the other way round.
- Buying a bounce from support → stop a little below the support.
- Selling a rejection at resistance → stop a little above it.
- Trading a breakout → stop back inside the range.
A stop placed at "20 pips because that feels right" is hit by noise; a stop placed beyond the level is hit when you were actually wrong.
Where the take profit goes
At the next level the price is likely to react to — the next resistance for a long, the next support for a short. Compare the distance to it with the distance to your stop: that is your risk-to-reward ratio.
Trailing stops
A trailing stop follows the price as it moves in your favour, locking in gains, and stays put when the price retreats. MT5's built-in trailing stop runs only while the terminal is open; for a stop that survives closing your laptop, move the stop manually or use a pending order.
Steps in MT5
Adım 1: Open the order window
Press F9, or right-click the chart and choose Trading → New Order.
Adım 2: Set volume, then Stop Loss and Take Profit
Type the prices, not the distance. Long trades: SL below the current price, TP above. Short: the reverse.
Adım 3: Confirm and check the chart
Two horizontal lines appear. Drag either to adjust.
Summary
Every trade gets a stop and a target before it opens. The stop lives beyond the level that proves you wrong; the target lives at the next level; the size of the position is what you adjust to fit.