How to Minimize Your Losses And Sky-Rocket Your Profits Trading Forex

by Okafor Nwabueze
When you open your trading station software (provided to you for free by your broker, you will find there are two main ways to enter a market or, said in another way, there are two ways to place an initial order to buy or sell any currency pair.
(After we discuss the market and entry order, we'll discuss how to minimize your losses and sky-rocket your profits
Market Order - an order to buy or sell a currency pair at the market price the instant that the order is received and processed (within seconds of hitting the "OK" button on your screen). When a market order is placed, you are simply saying "I'll but or sell the currency pair at whatever price it is at when my order gets processed." Example: if you are looking to place an order for JPY (YEN) when the dealing price is 104.00/05, a market order will request to buy JPY at 104.00 or will request to sell JPY at 104.05 (of course, whether you buy or sell it is up to you and is chosen on the software drop down box. And, again, once you've made your selection, this order is placed with a single click and is executed almost instantly).
Entry Order - an order to buy or sell a currency pair when it reaches a certain price target. This can be any price in theory. You could set an entry order for the low price of a time period, or the high price of a time period. When you place an entry order to buy, for example, you are simply saying "I want to buy this currency pair at a certain price, if it never reaches that price, I don't want to purchase the pair."
Example: the current "real-time" quote for the EUR/USD is 1.3317. your analysis shows that IF the pair hits 1.3329 (a key resistance point) that there's a high-probability the pair will turnaround (retrace down) so you decide to place an entry order to sell the EUR/USD at 1.3327.
The entry order above shows you how you are fully-empowered to pick a price and place an order to sell at that price. If the market hits 1.3327...great, you now have an OPEN position and, as long as the EUR/USD pair keeps dropping and you close out (exit) your trade at a price lower than 1.3327, you make money.
And, if you don't get in the trade, via your entry order, don't worry. New trades are constantly developing and if your order entry doesn't get filled you can't lose any money. Learn not to be upset when an entry order isn't filled. You are saved most of the time anyway because the currency pair did the opposite of what you though and you would have lost money, most likely, if it did get filled. Remember, when orders are not filled, it means you never risked any money!
If you want to minimize your losses and sky-rocket your profits, I will recommend you enter the market via entry orders. It has been proven over and over again that you tend to accumulate more profits than losses when you entry the market via entry orders.