When to set stop-loss and take-profit in forex trading ?

How to set stop loss and take-profit in metatrader
Stop-loss is a stopping order for controlling loss. When a position is moving towards loss than stop-loss sends out the closing signal. A broker is required to close a position when the currency orders of either buying or selling reach a certain preset level. Loss happens to be fixed if the curve in the chart does not head on your direction. On the other hand a profit happens to be fixed if the curve moved in direction of profit and reversed. Therefore by setting up a point of loss in the stop-loss can help avoid losing considerable amounts of funds. In case the forecast seems correct and price moves positively in the preset direction of order, but you think it still might be early to be closing the position then it is essential to configure a loss level of a stop-loss order to be able to rescue your profits. Moreover, no matter what event may unfold, profits require of you to be patient.

Take-profit is an order waiting to be triggered for closing a position at some preset price. It is employed for fixing the amount of profits. Take-profit works on a similar analogy as the stop-loss, however in take-profit it’s the profit that is fixed.
Therefore by configuring a take-profit order in advance for some forecasted point come from the supposition that the order would reach that preset level of profits in a particular time span and that you consider the point to be exactly where the position is needed to be closed, thus fixing the profit.

Important Rule :
Stop loss and take profit (target) we need to put on calculated important levels.That levels can be former low or high, important Fib. level, daily high or daily low, weekly high or low etc.

One example video:

Trailing stop:
Mostly trading terminals also provide trailing stops. When a trailing stop is set up, the terminal starts only when the movement of the market is in direction of earning you profits. When that happens, terminal installs stop-loss at some defined distance from the existing price. In case a quotation is received wherein the distance between the stop-loss and the existing price goes beyond a particular amount of points, terminal signals the command of changing the distance of a stop order from the existing price by some points. Therefore it could be said that trailing stops are management algorithms for stop-losses. However the mentioned process occurs only after the terminal has started and updated information has been exchanged.

Conclusion:
Stop loss is very improtant. Never trade without stop loss. Always calculate and find nice price level for stop loss.Former support and former resistance are usually ideal for stop loss.