When deciding to take a trade, first step is to choose the way you want to enter the market. If you want to buy, than this is being called going LONG, and if you want to sell, than this is being called going SHORT. That means you are a BULL in the first case, and a BEAR in the second one. That also means that you are looking for the price go UP in the first case, and DOWN in the second.
After deciding that, based on your technical and/or fundamental analysis, you have many options regarding how to actually enter the market:
- at the market: that means just going and buy/sell the current price on the market;
- buy stop order: that means you are placing an order to buy at higher values than the current ones;
- buy limit order: that means you are placing an order to buy at lower levels than the current ones;
- sell stop order: that means you are placing an order to sell at lower levels than the current ones;
- sell limit order: that means you are placing an order to sell at higher levels than the current ones.
These are the types of orders offered by Metatrader and you should be ok using them. There are out there on the market different platforms offering even more complicated types of orders (trailing stops, OCO – one cancels other orders, etc) but the basic ones that you need to know when trading are the ones mentioned above.
In this recording I’ll show you an example of each type of order as well as how to place a stop loss (SL) and take profit (TP) level/order.
Starting with the next video we’re going into the second chapter of our trading manual and going to take a look at some indicators, one at the time, what they mean, how they should be interpreted, and much more.