Entry, Stop-Loss and Take-Profit: How a Trade Plan Works

A trade without a plan is just a bet. The plan is three numbers decided before you enter: where you get in (entry), where you admit you're wrong (stop-loss), and where you take the win (take-profit).

Entry

The entry is the price you want to open at — ideally a zone, not a single tick, so a small wick doesn't miss your fill. A good entry is near a level that invalidates quickly if wrong, which lets you use a tighter stop.

Stop-loss

The stop-loss is the most important number. It's the price where your idea is proven wrong and you exit for a small, known loss. Place it beyond a structure level (a recent low for a long), not at a round number everyone can see. Never move a stop further away to avoid being wrong.

Take-profit

The take-profit is where you close in profit. Set it so the reward is worth the risk — at least 1.5x your stop distance. Many traders scale out: take part at the first target, move the stop to break-even, and let the rest run.

Signal Bench attaches all three to every signal automatically, sized to your account — see the trade plan on the dashboard, or read Learn: risk vs reward.