Hi,
I am new to trading and just wondering, why do traders choose an entry price and not just buy/sell at market? Also how is it that they decide what price to set when placing the order?
I never open or close trades live, always through orders. for entries, it is particularly useful to be able to use a price movement as a degree confirmation: for example, if I see that price is in an uptrend but has pulled back, I might think the most probable next move will be upwards again, so I can set an order above the current price, so that if price moves to my order level, it triggers the order and I move into profit. But if price does what I thought was the less likely thing and continues to fall, the order never triggers and I have no losses.
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Ah ok, yes that makes sense. That is very helpful, thankyou
This is exactly how I do do it as well.
However I’m still struggling how many pips to put between my decision candle and the entry price.
Do you use an exact and same amount of pips to put between your decision candle and the entry price?
Or any other method?
e.g. If going long, I use the high of a decision candle plus the spread plus a few pips/points to allow for a little volatility - significant price levels are never as exact as the text books and training courses suggest.
Is that what you’re asking about?
Thanks for responding so quickly! Yes that’s what I mean, than you!
Just checking:
So if the spread is 3 pips you add another 3 pips for example, which means that your EP is 6 pips above the high of your decision candle (if going long).
…right?..
Yes Paet. Which is another reason short-term trading looks so easy on charts but is so hard to achieve profitably.
Thanks a lot, Tommor
Hi I’m tying to read calendar, what’s the meaning of currency with low, medium, high, terms?
This refers to the probable level of impact of particular news events. Note that the actual event, on a particular date, might not have the level of impact that is expected, or the level of impact it previously did - it depends on other circumstances.
Also, different sources grade news events differently, so there will be some disagreement between websites about what is e.g. medium and what is low.
So because higher term is now red coloured means it’s the strong negative impact On the currency?
Not necessarily negative. In this context, red does not mean negative, it just means very important. The actual content of the news will determine whether the market sees it as positive or negative.
because recognizing a good entry point is the first step to become a successful investor.