#561: Why Every Trader Should Consider Using Limit Orders

Online Forex Trading Course

Why Every Trader Should Consider Using Limit Orders Podcast: Find out more about Blueberry Markets – Click Here Find out more about my Online Video Forex Course Book a Call with Andrew or one of his team now Click Here to Watch Prop Firm Masterclass #561: Why Every Trader Should Consider Using Limit Orders In this video: 00:24 – How to best enter a new trade. 01:11 – I mostly use Limit Orders. 02:17 – The benefit of using Limit Orders. 03:53 – Other things which add to a trade setup. 05:00 – My 17 minutes Masterclass and Book a Call. 05:30 – Blueberry Markets as a Forex Broker. 06:01 – Comments, Like & Subscribe. What's the best way to enter a new trade to make sure that you get the best possible outcome? Let's discuss that really important topic and more. Right now. Hi there, Traders! Andrew Mitchem here, the owner of the Forex Trading Coach with video and podcast number 561. How to best enter a new trade. Today I want to talk about how you can enter a new trade and how you can get the most out of your trade by doing a few clever things. So there are a couple of options that we have, or three really. you can enter what's called a market order, which means you jump into the trade straight away, and it's what most people do. or you can use a stop order. And for a stop order, it means on a buy trade, you're buying above the current price. And for a sell trade, it means you're selling below the current price. Or you can use a limit order or a retracement order. And a limit order means on a buy limit. It means that you're buying below the current price. And on a sell trade, it means you're selling above the current price. I mostly use Limit Orders. Now, I'm a big fan of limit orders, and this how I place the vast majority of my trades. And the reason I do that is because I know that the market is not a straight line. You have a look at most charts and most markets and most timeframes, and you'll never see, a perfect straight line. You will never see a candle close and the next one just open and go in the perfect direction. Most times you will find there will be some form of upper or low wick on a candle, and there will be some form of, movement. Let's say the market's moving upwards. and a candle opens most times within that candle's, formation. Let's say it's either H4 chart or our daily chart or whatever it is. Most of the time it will go up, it will come back, it will go up again, maybe come back again, and then finally go up. so you get retracements all of the time in pretty much every market and every time frame. The benefit of using Limit Orders. And so by using limit orders, what it does is it means we get in at a better price. It means that we, on a buy trade, we see the market at a certain level. That means we have buying if it pulls back to a lower price first, and if the market then heads turns around and heads in our anticipated direction, by the time it gets to where the candle opened, you're already in good, positive territory. And by the time it gets to a profit target, you've made really good money. Now, what that does is it drastically improves the reward to risk that you get out of your trades. So go and have a look at any chart and you have a look at let's say you imagined, you took a trade at the market as soon as the next candle opens. And then you have a look at how much you're going to make in terms of your stop loss, your profit target, and the reward to risk from that trade. And then do the same thing again with that same setup. Go, okay. But if it's moving up and it's buying, what happens if I bought below the current price and I'm first, looking for the market to pull back now of course, for the limit order, you're not sat there waiting for all this to happen. You're just simply saying I'm putting a buy limiting at this price. And if the price pulls back, it gets you filled and then hopefully moves up in your anticipated direction.