8 Step To Make A Forex Trade:
1) Start the Trading Platform- The first step is opening the trading platform.
2) Open The Chart- Now choose a currency pair and open a chart. Select a time frame.
3) Add Indicators (if you want too)- or skip this step.
4) Place The Order- Now prepare to place the order.
5) Set The Stop Loss And Take Profit Levels- Now set your stop loss and take profit levels. This step is optional but highly recommended. Experienced traders have found that setting a stop loss at half the pip amount or less than your take profit level can set you up for long-term success. This is because you can be right less than half the time and still come out at the end of the week, month, year ahead if you have a favorable risk-reward. Setting the stop loss will limit your losses if the market does not move in the preferred direction. Setting the take profit level will make sure that the trade exits in profit once the market makes the downward move that is expected. It can be an advantage to set these levels when you place the trade because once the trade is actually in the market, the pressure can make it difficult to make decisions.
6) Order Confirmation- Submit order and wait for confirmation screen. Confirmation is important as is ticket number because you may need to reference the ticket number if you need to call broker about trade. Of course, you don't want anything wrong to happen with execution, but if there is a mistake in execution on part of broker you will need to go to them with confirmation and ticket number so they can correct their mistake and credit account back if necessary.
7) The Waiting Period (Waiting Not Trading Is Where You Make Or Lose Money)- Now waiting period begins. This is the more difficult concepts in Forex trading. Some traders find it helpful to turn off the screen and get away from the market once they've entered so that they are not constantly fretting over market moves. Either way, sticking to a good risk reward is a favorable approach and whether your stop or take profit order gets hit, you have done your job correctly.
8) Trade Completion- Finally, the trade is complete. Trade results can be only three, which are makes money, loses money or breaks even.
Remember in trading to do four things: Win Big, Win Small, Lose Small but Never ever Lose Big!!! Risk management on all trades is necessary.
1) Start the Trading Platform- The first step is opening the trading platform.
2) Open The Chart- Now choose a currency pair and open a chart. Select a time frame.
3) Add Indicators (if you want too)- or skip this step.
4) Place The Order- Now prepare to place the order.
5) Set The Stop Loss And Take Profit Levels- Now set your stop loss and take profit levels. This step is optional but highly recommended. Experienced traders have found that setting a stop loss at half the pip amount or less than your take profit level can set you up for long-term success. This is because you can be right less than half the time and still come out at the end of the week, month, year ahead if you have a favorable risk-reward. Setting the stop loss will limit your losses if the market does not move in the preferred direction. Setting the take profit level will make sure that the trade exits in profit once the market makes the downward move that is expected. It can be an advantage to set these levels when you place the trade because once the trade is actually in the market, the pressure can make it difficult to make decisions.
6) Order Confirmation- Submit order and wait for confirmation screen. Confirmation is important as is ticket number because you may need to reference the ticket number if you need to call broker about trade. Of course, you don't want anything wrong to happen with execution, but if there is a mistake in execution on part of broker you will need to go to them with confirmation and ticket number so they can correct their mistake and credit account back if necessary.
7) The Waiting Period (Waiting Not Trading Is Where You Make Or Lose Money)- Now waiting period begins. This is the more difficult concepts in Forex trading. Some traders find it helpful to turn off the screen and get away from the market once they've entered so that they are not constantly fretting over market moves. Either way, sticking to a good risk reward is a favorable approach and whether your stop or take profit order gets hit, you have done your job correctly.
8) Trade Completion- Finally, the trade is complete. Trade results can be only three, which are makes money, loses money or breaks even.
Remember in trading to do four things: Win Big, Win Small, Lose Small but Never ever Lose Big!!! Risk management on all trades is necessary.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.