Trading Orders — Market, Limit, Stop, SL, TP

You understand the market, the vocabulary and the chart. This chapter is "the buttons you will press" — the trading orders.

2 basic directions — Buy and Sell

- Buy (Long) — you open a position expecting the price to rise · the price rises = profit - Sell (Short) — you open a position expecting the price to fall · the price falls = profit

The upside of forex: you can profit in both a rising and a falling market — just pick the direction right.

Orders to open a trade — 2 types

1. Market Order — enter right now An order to buy/sell at the current market price, immediately · press it and you are in · used when you want to enter now.

2. Pending Order — set it and wait An order set in advance, to enter when the price reaches the level you set · 2 main kinds: - Limit — wait to enter at a price better than current (e.g. a Buy Limit = wait to buy when the price pulls back down) - Stop — wait to enter at a price past the current point (e.g. a Buy Stop = wait to buy when the price breaks up)

A beginner can start with Market Orders — but know that pending orders let you not have to watch the screen.

The heart of this chapter — SL and TP (the exits)

Anyone can open a trade · what separates those who survive from those who blow up is setting the exits.

Stop Loss (SL) — the loss-cut point The price at which, if the price moves against you to this point, the trade closes automatically — it caps the loss so it cannot spiral.

The SL is not optional — it is mandatory · a trade with no SL = a trade that can lose without limit = it can blow up your account in a single trade.

Take Profit (TP) — the profit-collect point The price at which, if the price reaches it, the trade closes and collects profit automatically — it stops you getting greedy until the profit is gone.

Always set the SL/TP when you open the trade — set them with a cool head, before emotion enters.

Risk:Reward — the profit you hope for, versus what you risk

If you risk (the distance to the SL) = 20 pips · and hope for profit (the distance to the TP) = 40 pips → Risk:Reward = 1:2

The beginner rule: choose only trades with R:R of at least 1:2 — risk 1 for the chance of 2 · this way, even guessing right only half the time, you still profit overall.

An example of a complete trade: 1. You see the EUR/USD pair is in an uptrend 2. Open a Buy of 0.01 lot at the current price 3. Set the SL below the latest bottom (risk 20 pips) 4. Set the TP at the next resistance (hope for 40 pips → R:R 1:2) 5. Let the system work — do not watch and fret, do not close on a whim

> Buy = bet up, Sell = bet down · anyone can open a trade — but the ones who survive set a Stop Loss on every trade and choose only R:R ≥ 1:2 · the exit matters more than the entry

The last chapter — open a real account and place your first trade safely