Protrader experience - Entering a trade
To enter trade using Protrader platform is pretty simple. Assuming we have already established an account with our broker and funds deposited, the only thing is to set right instrument, transaction size and maybe Stop Loss / Take Profit levels. Then the only thing you need to do is to click buy or sell button whether you think market will move up or down in the nearest future.
To enter trade from Protrader terminal, you need to use one of available methods:
- Order Entry standalone panel
- Order Entry panel attached to chart or visual trading feature
- FX Cell
- Market Depth, Matrix or Scalper panel
- Expert Advisor / algo-robot
- Orders basket
- Alerts panel
Here everything is easy until our hard earned money is put at risk. This is how simple, technical action becomes a serious decision that bring plenty of emotions and the more money we decided to put at stake the more intensified emotions will be. Of course, dilemmas don't show up since the beginning, because usually we don't have basic knowledge about price movements already at the starting point. It's our experience with markets and awareness of market's unpredictability fills us with doubts. As we gain more experience trading on markets, we collect our failures and remember them better than successes. Moreover, most beginner traders have more loses than wins, what is natural, and most of them become afraid of the market, what is also natural. Therefore, the more we trade - at the beginning - the more we are scared and our mind subconsciously tries to compensate or to avoid that discomfort. There comes crisis in trading which only few survive. There is that moment, when you know a bit about market, you have some experience as well, but your performance is very bad, way worse than earlier, despite of time and work you've devoted to learn trading. It caused mainly by lack of psychological resistance. But no only psychological approach impacts your trading, as it is an action-reaction scheme. The way you trade and mistakes you make tend to weaken your psyche. Therefore you need to avoid some common mistakes, that you make from the very moment when you open a trading terminal. Here are some outlined:
1. Do not trade feeling sick or emotionally instable. In both cases your decision process will be faulty whether you perception or psyche fails. Emotional instability doesn't mean any psychological affliction. It might mean some personal trouble with friends or family - this is enough to mess your trading up.
2. Do not trade in rush. If you don't have enough time to make calm and complete analysis, do not even think of entering a trade. Same applies when you see that market is running away of your signal or that you've missed an opportunity for profitable trade. Do not haste to catch the bus or you will probably end up hit by a car.
3. If you feel fear or if you are not convinced with the signals you get from market, do not trade. It's better to lose a look-like-good opportunity than to make a bad trade and to blame yourself. The latter may affect your psyche and therefore all future trades, that normally would not be related to previous results - it's mainly your mind that makes this relation between trades true.
4. Do not try to catch a falling knife and do not try to sell a gone-to-high market. You shouldn't trade against prevailing direction or in rush. If price is falling sharply, but you've spotted an opportunity for a long trade, it is better to hold on and wait till price action calms down. It's pretty uncommon for price to drop like a rock in one moment and to surge rapidly in other leaving bulls in half a way to the bus station. Even if sometimes such case becomes real indeed, it may mean that demand is strong enough to provide more buying opportunities in close future, or that market is unstable (i.e. after macro release) at the moment, and it's better to stay aside. So it's more secure to wait until price settles down, creates some base, confirms our entry level and then to enter.
5. Do not buy under a resistance level and do not sell on a support level. Sometimes price movement looks strong enough to continue and break S/R level ahead, but price usually tend to reverse after preliminary penetration leaving trades that break that rule out of the money. Correct behavior would be to wait until price either breaks the S/R level and makes legit pullback or it bounces of the S/R level creating new situation and providing fresh trading signals.
6. May all your trades be planned up front? Treat every trade like a major purchase in your life, when you check product specification, read users' feedbacks and compare sellers' prices, while considering the way of financing and finalizing the deal. Same approach applies to trading - you need to have a plan what you will buy, when and at what price. You should determine some scenarios that you think are more probable, and some less probable (alternative). Moreover, you need a hostile scenario as well for situation when everything goes wrong. You have to know what you will do depending on how market situation will develop so you could avoid being surprised by market and making decisions in rush - and that will negatively affect your ability to make good decisions for sure.
For more information about entering trades using Protrader please visit:
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