Is there any difference btw entry/exit,buying/selling,and open/close oders.
There are huge differences but your question is a little vague. I’m not sure what it is exactly you need to know. Could you be more specific?
An open position means that you are in a trade, whereas a closed position means you have exited that trade. Buying just means you enter the trade with the currency pair going up and selling the the opposite of that. If you mean is their a difference between the pairs you mentioned, then technically no. Entering is the same as opening a position is the same as buying/selling (remember you can buy or sell the currency pairs) and exiting is the same as closing a position is the same as selling/buying. Hope this helps, if it’s confusing, sorry. Anyways stay cool, take it easy eh!
I am glad for your reply.
pls can anyone explain to me why some forex traders would even set their stop loss limit to between 20-30 pips? Why would anyone like to loose even one pip? Or does your stop loss limits have a ripple effect on your gains as well?
Also, even though i’ve heard it’s best to concentrate on 1 pair, i still find it difficult to do so because sometimes i may not find a good trading oppurtunity with my chosen pair, and i’m forced to check other pairs with good trading oppurtunity.And most times i find a better oppurtunity since i can’nt stay watching charts all day.NEED HELP!
You would never be able to stay in a trade with a stop loss that’s too small. Also, pairs like the GBP/USD can move 20 pips in the blink of an eye and then move in your direction the way you anticipated it to. The point of a Stop that large is to give your trade room to breath. Don’t forget your also starting your trade off minus a few pips because of the spread. I think most admins on babypips use about 50 pip stops or place them behind/ahead of major support & resistance zones.
Your right, I tried concentrating on one pair then decided to follow the 5 majors instead which works out much better
Of course no one likes to lose. The idea of the stop loss is to make sure you don’t take too large a loss and severely damage your account value - and probably your psyche as well.
Actually, I don’t use a “stop loss” as such. I set my stop order at a point where the market is telling me that what I thought would happen probably isn’t going to after all. I’m not really protecting my downside with the stop. That’s done with my position size based on the risk I’m willing to take on the trade.
The advantage of focusing on one pair is that you get to know how it moves really well. It takes a lot of observation to develop the experience to know when the market is likely to bounce off support and when it’s likely to drive through, for example.
That said, it’s generally the short-term trader that can focus like that for exactly the reason you mention. They can be assured of trading opportunities. Part-timers will often take a wider view to make sure there are enough potential trades.