Can I Set a Take Profit Order on Pending Trades?

Written by Nadav Zelver

Reviewed by Wikitoro Team

Having spent years navigating the tricky waters of forex and stock trading, I've frequently faced the conundrum: "Can I set a Take Profit order on pending trades?" Based on my experience, here's what I've learned:

1. Introduction to Take Profit and Pending Trades from My Journey

When I first began trading, the idea of setting a Take Profit order was quite appealing. Imagine this: you set a level at which your position automatically closes, securing your profits. The magic is in pairing this with a pending trade - an order I would set for a future price but wasn't yet executed.

2. My Experiments with Combining Take Profit with Pending Orders

I remember the first time I paired a Take Profit order with a pending trade. The markets were particularly volatile, and I was anxious. But this combination worked wonders. Before my trade even began, I had defined my exit strategy. It felt like setting a safety net before walking the tightrope.

3. The Various Pending Orders I've Played With

Over the years, I've experimented with various types of pending orders:

• Buy Limit with Take Profit: Where I aimed to buy low and automatically sell when I hit a satisfying high.
• Sell Limit with Take Profit: This was my strategy when I anticipated a price drop after a rise.

4. The Eureka Moments and Challenges

Setting a Take Profit on pending trades often felt like I had an assistant watching over my trades, especially during the nights I was sound asleep. However, I learned it's essential to not set the Take Profit too close to the entry, lest I miss out on larger profits.

5. Step-by-Step, How I Set My Take Profit on Pending Trades

Using platforms like MetaTrader became second nature:

• I'd pick my asset after meticulous research.
• Depending on my strategy, select the pending order type.
• Carefully decide my entry price.
• Recall past experiences, market conditions, and then set a Take Profit level.
• Confirm and take a deep breath!

6. Lessons Learned and Tips

Through trials and errors, I realized the importance of constantly adjusting to market news. I also learned that relying solely on Take Profit wasn't wise. It's a tool, not a magic wand.

7. Comparing My Experiences: Take Profit for Active vs. Pending Trades

There's a distinct rush in setting Take Profit for active trades, dynamically responding to market shifts. But with pending trades, there's a sense of strategy and foresight involved.

8. Questions I Often Get Asked

Fellow traders often ask if setting a Take Profit is mandatory. Based on my adventures, no, but it's a guardian angel for your profits.

9. Concluding My Take Profit Journey

Incorporating Take Profit orders in my pending trades has been a game-changer. It requires a blend of strategy, prediction, and some courage. And while it's been a learning curve, the rewards, both in profits and peace of mind, have been worth it.