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Target Is Known

If your first trade is stopped out and you are going to place a stop-and reverse trade or another trade in the same direction (‘cost averaging’) with the goal of recouping your loss and breaking even or better, you can use either the Trade Plan tab or the Break Even tab.

The Break Even tab gives you a very fast way to grab just the critical info you need if you are already experienced at placing these kind of trades.

Specifically though – if you look at where your second trade may realistically go and you see a significant level of support or resistance, a Fib level, key price or some other defining setup that creates a TARGET for your take profit or exit, use the second option on the break even tab.

Pick the bottom radio button

Click the lower radio option on the Calculator break even tab to select Exit Target Is Known.

Pick your currency pair

Use the dropdown menu to select which pair you are trading. If you don’t see the pair you want, revisit the Currency Rates tab and click show next to it.

Fill in first leg info

Fill in the 3 key things about your first leg trade: lot size, entry price and stop loss price.

Why don’t you need to enter whether this first leg was a buy or a sell? Because this tool in the Calculator is based on the assumption that your first leg was stopped out, so it knows you were selling if your entry price is lower than your stop loss price and it knows you were buying if your entry price is higher than your stop loss price.

Fill in second leg info

For the second leg, you only need to fill in your entry price and your exit target. You then get the information displayed about how many lots you should use in the blue box below.

Exit target looks like

As soon as you enter your second leg info, you’ll notice a text message under your exit target that says:
Exit target looks like {some price}.

This is an important piece of information for you to look at because it takes into account how bid and ask make an exit target look different whether you are buying or selling.

Most platforms display the bid price but not the ask price (unless you modify your platform to show you this too).

If you are going long you are buying on the ask and exiting on the bid.

If you are going short you are selling on the bid and exiting on the ask.

So when you are going short, the Advanced Calculator will display the price you should look at to see your actual exit on the ask. In this way it will often prevent you from taking a loss made by targeting one price when in fact it is a different price where the broker will actually take you out.

If this is confusing to you, please take the time to study the material we have created to fully explain bid and ask and how the Advanced Calculator takes these into account for you. So many new traders suffer so much loss because they don’t fully account for this.

Actual lots used / exit price

The Calculator will display how many lots to use to get you out at net break even, but it’s always up to you how many lots you actually want to use. If you use more or less than the value shown, you have the option to enter it in the Additional Information box below, along with your actual exit. You will then see how many effective pips you ended up taking along with the value of your profit or loss.

Video with trade example

Here is a complete demonstration of using the Break Even tab of the Advanced Calculator to see how many lots to place on a trade – if our first trade is stopped out – to attain break even or better. This is the 2nd option on this tab.

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