In our last lesson we learned how to place stop loss and take profit orders which allow us the freedom to step away from the computer and have our exit orders automatically execute should the market reach one of our targets. In today’s lesson we are going to continue our free forex trading course with a look at entry orders.
Where the stop loss and take profit orders automatically execute to take you out of an existing position when the market reaches a certain level, the entry order automatically executes to open a new position.
To help understand what I am talking about lets log into our free real time demo accounts and place a couple more orders. If you have not done so already, I encourage you to pause this video now and click the link above this video if you are watching on InformedTrades.com or to the right of this video if you are watching on YouTube, and register for a free real time demo account so you can follow along as well.
For this example lets say that my analysis tells me if the EUR/JPY reaches 164.50 then this would be a good level to sell. I do not however want to sit in front of my computer and wait for the market to reach that level however. Luckily this and most other electronic platforms will allow you to place what is called an Entry order on this particular platform, which will open a trade for you only if the specified rate in the market is hit.
To the right of the dealing rates window you will see a window labeled "orders". Right click anywhere in this window which will bring up a gray drop down menu. In this menu you should see an option to "create an entry order". Select that option by left clicking, which will bring up the entry order box.
Change the currency pair that you wish to trade to EUR/JPY, make sure the sell option is selected, and then change the rate in the rate line to 164.50.
Once you do this click ok and you will see that order move into the orders window with the word "waiting" in the status column. As you can see you now have an order to sell 1 contract of EUR/JPY if the sell rate in the market touches 164.50.
Now this is a nice feature that will allow you to enter the market if you are away from your computer and a level you have been watching is reached, but as it is set up now that position will be completely unprotected after entry, and we have not determined how to close the position if it hits our profit target.
If you notice in the order window however there is both a stop and a limit column just as there is in the open positions window. This allows us to enter both a stop loss and take profit order on this pending order. The difference between these stop loss and take profit orders and a normal stop loss or take profit order, is that these are what are known as "if done orders". What this means is that the stop loss and take profit order will only become active “if” the entry order price is hit. If that price is not hit then nothing happens with these orders. If the entry order price is hit then you will see that position move from the entry order window into the open positions window, and the stop loss and take profit order will then be active there.
For your homework assignment tonight I encourage you to analyze the market using the techniques we learned in our free basics of trading course and then place a few entry orders using the technique we just learned here. If you would like to share your trades with the InformedTrades.com community I am sure we would all love to see them, so please feel free to post them in the comments section of this lesson on InformedTrades.com.
That’s our lesson for today. In our next lesson we are look at something which is known as rollover and how you either earn or pay money for holding positions over night so we hope to see you in that lesson.
Actionable trading levels delivered to YOUR charts in real-time.
Veteran FX Trader, Max McKegg, forecasts all the Major currencies and the Australasians; providing Daily and Medium Term Trading forecasts to subscribers, who include large Banks the world over, as well as individual traders in more than 30 different countries.
looking for your first broker or do you need of a new one? There are
more critical things to consider than you might have thought.
We were trading long before there were online brokers. Global-View
has been directly involved with the industry since its infancy. We've
seen everything and are up-to-data with recent regulatory changes.
The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.
The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.
Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by Global-View.com.
The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.
Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.
Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.
Global-View.com also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at Global-View.com. This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.
WARNING: FOREIGN EXCHANGE TRADING AND INVESTMENT IN DERIVATIVES
CAN BE VERY SPECULATIVE AND MAY RESULT IN LOSSES AS WELL AS PROFITS. FOREIGN
EXCHANGE AND DERIVATIVES TRADING IS NOT SUITABLE FOR MANY MEMBERS OF THE
PUBLIC AND ONLY RISK CAPITAL SHOULD BE APPLIED. THE WEBSITE DOES NOT TAKE
INTO ACCOUNT SPECIAL INVESTMENT GOALS, THE FINANCIAL SITUATION OR SPECIFIC
REQUIREMENTS OF INDIVIDUAL USERS. YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL
SITUATION AND CONSULT YOUR FINANCIAL ADVISORS AS TO THE SUITABILITY TO YOUR
SITUATION PRIOR TO MAKING ANY INVESTMENT OR ENTERING INTO ANY TRANSACTIONS.