When to Use Buy Stop or Sell Stop for Your Trade Entries - Forex James
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The first question to ask ourself is WHY do we use buy/sell stops to enter the market? We are basically waiting for price to rise further before deciding to jump on the train, thus giving us a WORSE price when we could actually enter on a BETTER price. In real life, this seems completely illogical and not many people would do it. Most of us, when buying things, would like to buy as low and as cheap as possible, to make the most profits.
With all that being said, there is actually a few good reasons for us traders to use them. Essentially this type of entry is often used by breakout traders
Here’s when you may use Buy Stops / Sell Stops to enter the market:
1. When the market is uncertain and sitting in a range, you wait for price to show you the direction of the breakout.
2. At high probability levels. Wait for confirmation of momentum - we know that once price has picked its direction, it tends to stay in that direction. So we dont want to be the first to get in because price may not turned around yet.
3. Tools you can use: TL Breaks, Pivot Breaks, Fib Levels. You basically give up your pips for that extra confimation of certainty.
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#forexforbeginners
#forextradingtutorial
#liveforextrades
#forextrading
#onlineforextrading
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The first question to ask ourself is WHY do we use buy/sell stops to enter the market? We are basically waiting for price to rise further before deciding to jump on the train, thus giving us a WORSE price when we could actually enter on a BETTER price. In real life, this seems completely illogical and not many people would do it. Most of us, when buying things, would like to buy as low and as cheap as possible, to make the most profits.
With all that being said, there is actually a few good reasons for us traders to use them. Essentially this type of entry is often used by breakout traders
Here’s when you may use Buy Stops / Sell Stops to enter the market:
1. When the market is uncertain and sitting in a range, you wait for price to show you the direction of the breakout.
2. At high probability levels. Wait for confirmation of momentum - we know that once price has picked its direction, it tends to stay in that direction. So we dont want to be the first to get in because price may not turned around yet.
3. Tools you can use: TL Breaks, Pivot Breaks, Fib Levels. You basically give up your pips for that extra confimation of certainty.
#forextradinglive
#forextradingstrategies
#forexforbeginners
#forextradingtutorial
#liveforextrades
#forextrading
#onlineforextrading
Subscribe to Our Channel
Youtube: https://www.youtube.com/channel/UC_XB8yKzMgtugR-5HPOqlLw
Connect with us on Social Media
Facebook: https://fb.me/forexjamestrader
Twitter: https://twitter.com/Fx_James_Trader
Instagram: https://www.instagram.com/forexjames/
