How to Enter Trades in Forex - Using Pending Orders
Today we go over exactly how to enter trades in forex. I show you exactly how to enter using pending orders (buy limit, sell limit, buy stop, sell stop) as well a showing you exactly why you would enter these types of trades over market execution.
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In this Video:
0:00 - 5 Different Ways to Trade
1:39 - Intro
1:47 - Using Instant Execution
3:10 - Buy Limit
5:02 - Buy Limit Walkthrough
6:16 - Sell Limit
7:20 - Sell Limit Walkthrough
8:13 - Buy Stop
9:28 - Buy Stop Walkthrough
10:19 - Sell Stop
10:52 - Sell Stop Walkthrough
11:33 - Why You Want to Practice Pending Orders
13:35 - Outro
Most traders are used to inputting their trades using the "Market Execution" option since this is the easiest, most basic way to enter a trade.The downside to this is, when most people enter this way, they're entering just based on emotions or intuition. They're not trading based on specific structural areas in the markets.
So instead of entering instant "buys" or "sells", a different way to enter a trade is using pending orders. These types of orders are Buy Limits, Sell Limits, Buy Stops, and Sell Stops. In today's video I go over all the 5 different ways you can enter a trade, including the pending orders.
The first one is a Buy Limit. You would enter a buy limit if the price is currently above the price you want to enter at. In other words, your entry must be BELOW the current price. Entering a Buy Limit, you're anticipating the price will come down to your entry, and then start climbing back up. In the training I show you exactly how yo execute a buy-limit.
The next one is a Sell Limit. This is the exact inverse of the Buy Limit. A Sell Limit, you're looking for a short entry (a sell). And your pending order must be ABOVE the current price. You're anticipating the price will climb up to your entry, have your trade triggered, and then you're anticipating the price will come back down. You're looking for a Sell.
The next one is a Buy Stop. A buy stop, you're looking to go long (enter a buy), but this time your pending order for your buy is ABOVE the current price. So you're looking for the price to move upwards, trigger/activate your trade, and you're anticipating the price will continue upwards. Most traders who use these types of entries are waiting for confirmation candles after setups, (example is a break-retest)
The last way to enter a trade is using a Sell Stop. A sell stop is a trade where you're looking to go short. YOu're looking for a sell. You would enter a sell-stop BELOW the current price-action, and the trade will be pending/waiting to get triggered once the market comes down and approaches your entry. Once it activates your trade, you're anticipating the price will continue to go downwards allowing you to make money on the sell.
Those are all the different ways you can enter into a trade. As you can see, the "market execution" is a very quick (usually non-methodical) way to enter into a trade without much thought. However, if you enter any of the other 4 ways, that means you most likely throughout out a plan of that trade, and you have an actual setup that you're looking for to enter a trade.
I encourage you to practice all these different types of ways to enter and see if works better for you, see what it does to your bottom line, you might be surprised!
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DISCLAIMER:
These videos are for educational purposes only, they demonstrate how I invest and day trade. They should not be taken as advice on how to invest your capital. Margin trading carries a high level of risk and is not suitable for all investors. Consider your level of experience, investment goals, and risk management before investing in trading. Do your own research and talk to a professional financial planner to be aware of all risks associated with trading, I am not a financial advisor. Past performance does not dictate your future results. NEVER take a trade based on what you see in this video and NEVER trade money you can not afford to lose. Trading can be profitable, but losses are inevitable at times. I will NOT be held responsible for any losses you endure. You and you alone are responsible for risk assessment. Market fluctuations can work for you or against you. Your investments and trades are solely your responsibility.