As a trader, you need to know how to close orders. Closing an order is something that must be done in the trading platform and it says ‘done’ as soon as it’s closed. Closing an order is not the same as stopping or cancelling the order. It’s important to know when to use which closing type to make sure your trade goes smoothly. Here are some tips for closing orders based on the different types available.
This article is for those of you who have already opened a trading account but have yet to establish a trading routine. There’s a lot to learn, and it can be overwhelming at times. There are tutorials on how to use the trading platforms, as well as economic news releases that can assist you in selecting a currency pair to trade. What’s more difficult to come by is an explanation of how high your profit targets should be set. A clear rule for how long you should keep your orders open is even more elusive. Here’s a simple strategy for assessing your exit points instead of profits or losses based on price history.
Stopping orders at the right time
Any trade’s exit point can be hard to predict, but a consistent trading strategy can help.
If you’ve honed your trading skills on the Exness demo account, you’ve most likely seen some significant profits and losses. It’s important to remember that your trading goal isn’t to be consistently profitable—not that’s a realistic goal. Full-time traders usually aim to keep their total profits above their total losses, and there are a number of different of techniques that can help them do so. Of course, saying it is easier than doing it, but there are some areas that inexperienced traders commonly overlook.
Consider the following scenario: you have an open order on your trading platform. You’re probably thinking about where to set your Stop Loss and Take Profit levels, but you might be questionable about where to exit. This is where chart timeframes can come in handy.
To begin, how long do you intend to keep your orders open? It’s the first thing to think about. If you place a EURUSD order for the day, your Take Profit and Stop Loss settings may be very different than if you place an order for the month. This is why.
The most common example of timeframe analysis is in trend trading. If you’re thinking about trading XAUUSD, for example, you might want to stick to longer timeframes for analysis and speculation. This is due to fact that gold has a more gradual and predictable rise over the course of each year. Many traders regard it as a long-term investment opportunity. Set your timeframe to show the big picture when you set your exit points. What were the prices a month ago if you planned to complete the order in a month? Apply this logic to all of your trades, then compare the previous price level to the current resistance level.
If you’re day trading, however, don’t expect prices to rise much higher than they have in the previous 24 hours. Prices should not affect your short-term orders, regardless of where they were last year.
Top trading tip
Almost every professional trader keeps a journal of their actions and outcomes. Do you think so?
You’re looking for trends that are consistent across multiple timeframes, ideally. A Buy order could be a good option if both short-term and long-term trends have bullish indicators. Caution is advised if the short-term trend shows bearish tendencies within a long-term uptrend.
Reading price charts is a skill that takes time to master. You must spend time practising before taking to the highway, just as you would when driving a car. Make time each day to check the timeframes of several currency pairs. Take detailed notes on price history for the time period you intend to trade. What was the amount of movement and how long did it take? Make your conclusions and write down why you believe a Buy or Sell order is advantageous, then review your previous conclusions to see if you were correct.
Your perceptions of the market’s ebb and flow will change as you learn from your mistakes. Keep in mind that the goal of this strategy is to make more money than you lose.