Helloooo everyone
Please I am just startin out on forex with demo account
I have been trying to go into trades at a target price but b4 i finish setting my Stop loss and take profit, the price will have shift from the original one i wanted to enter at.How can i enter trade at where I want to without shift.
In addition how do I used larger timeframe to guide me using trading system similar to what is suggested in 11th Grade in school of pipsology.
I am confused and your help
have been trying to go into trades at a target price but b4 i finish setting my Stop loss and take profit, the price will have shift from the original one i wanted to enter at.How can i enter trade at where I want to without shift.
It could be you are not accounting for the spread. What ever your target price, when you place your order, you will always start out in the negative of the spread.
If your plain just to slow, just hit buy/sell right away, then re-open the order to set your SL / TPS.
Thank u 4 the advise . U talked about not considering spreads can u tell me on that.
For me, I just enter my entry price and if it doesn’t hit, then “oh well.” Adjusting your entry price just because you “don’t want to miss a move” can eat away at your profits over the long run because you don’t enter at the optimal price according to your strategy. Also, many times, volatility will bring the market back to your entry, and if it doesn’t then “oh well.” There’s always an opportunity in FX to trade.
It is called “slippage” and is worst during news trading.
That is why news trading is a special operation all on its own.
Thank for d advice how do i acount for the spreads.
Spread is the difference between the “bid” - what the broker will pay you when you sell, and the “ask” - what the broker is asking when you want to buy.
Also depending on the broker, some have fixed spreads and some don’t.
ECN brokers don’t charge you the spread but a commission instead - but there will still be a spread alot of the time which is what the market is creating.
You can also try Buy Stop or Sell Stop orders, or Buy Limit or Sell Limit orders if you are using MT4. That ables you set a pending order, including stoploss & take profit, at the price you want [U]before the price reaches it[/U], and when/if it does, then the order will get filled.
Buy or sell Stop orders means the price will need to keep going in the same direction when you set the order, and hopefully after too when it triggers, ;). For example to set buy stop, the current price is 1.00 and you want to buy at 1.05. So set the pending order to trigger at 1.05 (s/l .95 & t/p 1.15) and then wait to see what happens. You may want to use this if you want to see if it breaks a resistance level … say 1.00… and if it did then it could go well past 1.05. If it didn’t and reversed at the resistance line, then you just saved yourself from a loss if you had taken an instant buy market order.
Buy or sell Limit orders mean the price will need to retrace in price a little from the current price (against the direction you want to go) from when you set the order to trigger, then resuming in the direction you want it to go. For example current price is 1.10 and in anticipation of a small retrace, you set the buy limit to 1.05 (s/l 1.00 & t/p 1.15). If price did retrace back to 1.05 the order will fill and hopefully resume back up again before hitting the s/l. Sometimes this may get you in at a better price than if you got in at the current price.
That’s basically how I understand the way they would be used. Hopefully not too complicated to understand.
[B]If you were using an ECN you probably wouldn’t have that problem.[/B]
[B]THERE IS NO FIXED SPREAD IN FOREX!![/B]
Could you possibly get over yourself so people can have real discussions on here. Pretty please?
Thank for d advice how do i acount for the spreads.
Unless you use an ECN as TRO suggests, I think every major retail broker charges you a “fee” called the spread to place an order.
For example the EUR/USD typically has a spread of 2 pips
Now this is where things get tricky as different brokers seem to do things differently. I use IBFX and every order placed is at the ASK price.
So if i want to Buy the EUR/USD 1.4133 / 1.4135 (BID / ASK) then the current market value is 1.4133 but the broker wants thier 2 pips so the order is executed at 1.4135, so at that exact moment in time I start out - 2 pips which depending on your account size could equal -$20.00, -$2.00 or what ever.
Hope that helps