subject: Simple rules for placing orders at Forex Trading [print this page] Simple rules for placing orders at Forex Trading
If you have just started your Forex trading training, you're one of the many who were initially challenged with perceived complexities in placing orders. Don't worry because all those who are new and currently practicing in a demo account experience the slight difficulty on those price stops and limits. The mere fact you are now on your Forex trading training should keep you on the positive light as you took the extra mile to learn.
It is really as simple as understanding the main rules of placement of orders. These are powerful instruments of knowledge which can help you in the early stages of your Forex trading training.
Here are the basics:
1. In each currency pair, the first one is the base currency which you choose to buy or sell. In the case of your EUR/USD where you believe the Euro is surpassing the strength of the US dollar, you simply place a BUY order otherwise known as go long. If, however you believe the dollar has the edge, then simple place a SELL order or go short in your currency pair;
2. Your dealing station provides you two prices quoted for each currency pair, along with a BID price and an ASK price. The price difference between the two is the pip spread which the dealer gets from every trade. In major currency pairs, there are usually 3-5 pips;
3. As a major concern for those taking Forex trading training, always remember market order and entry order, the two types you can use to enter a trade. A market order is when you buy or sell at the market price at the time you enter a trade; the entry order is an order to buy or sell when the market price reaches your targeted level. Note that you should avoid market orders unless you really understand it;
It is wise and lucrative as well when you know your stops and limits. Any Forex trading training would highlight this as the turn to either winning or losing. Enter a limit only when you have calculated your trade and exit when you are at the profit level. You need to set a stop order if the price goes against you to protect your pips and profits. In sell orders, your stop should be above the entry price to earn.
As part of any Forex trading training, familiarize the software and consistently practice making entry orders. Keep doing those setting of entry prices and observe points to stop and limit levels. Most of what has been earlier explained is now available in a graphic presentation for easier understanding of beginners like you who need to undergo Forex trading training. Make use of such freebie to learn more about all aspects of trading as well.
