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Some Help Please on Trading

Discussion in 'General Forex Talk' started by AdamJ, Nov 9, 2007.

  1. AdamJ

    AdamJ Recruit

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    I'm new and confused. I found the babypips site - it's great and I refer back to it BUT . . .
    I set up a practice account w/Forex.com and just started trading this week.

    I had what I thought was a simple question, and after talking to the help desk, came away still confused and with no answer. I can only guess that my brain chemistry is still not functioning in the Forex mode or trading in general.

    Here's the scenario:
    1. I wish to make a trade - for ex: buy GBP (indicators are that it may have a run up), but wish to place a limit (exit if it goes up 100 pips) and stop loss (exit) if it goes down, let's say 30 pips below my entry point.

    2. I use the 'order' tab and hit 'order entry'.

    3. The 'order place' screen comes up. It's a single order and 'buy' 1 lot. However, the 'order basis' is 'limit', the 'order rate' is 30 pips below the market buy price. If the 'order basis' is 'stop', then the 'order rate' is set above the markety buy-in price (+30 pips)

    4. QUESTIONS:
    - What does the 'order rate' represent? It seems that if I'm doing a 'buy' at the current buy-rate for the currency, with a 'limit' -type order, that I would have to set what limit value I wish to exit at in order to take a profit (for ex: 100 pips above my buy-in price). However the order rate on the order placement screen will only accept negative numbers that are BELOW the market entry price. WHAT IS THAT ALL ABOUT?

    - I then tried using the IF/THEN approach, but immediatly ran into the same "unanswered question" and confusion as to the buy/sell - lease/stop issue.

    - Here's the bottom line: How does one make a buy (or sell) and place limits (limit / stops) on the order? The screens (on FOREX.com) are set up exactly opposite to "my way of thinking" (which obviously must be wrong - my thinking that is).

    HELP PLEASE. End this confusion so I can get back on the right track.
     
    #1 AdamJ, Nov 9, 2007
    Last edited: Nov 9, 2007
  2. Boko Maru

    Boko Maru Sergeant

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    Hi Adam...I haven't used forex.com, but they have a very bad repututation, so I wouldn't even waste time with a demo account there. You may want to try a demo with MB Trading.

    I'm not sure how forex.com's platform works, but in general if you want to make a buy and set up a take profit order when it goes up 100 pips, then you'd place a limit sell order at whatever +100 pips is. For a stop loss 30 pips below, you'd set a stop order to sell at -30 pips. From your comments I think you have all of that right, so I'd check to make sure your order wasn't originally put in as a "sell" rather than a buy.

    But again, figuring it out for forex.com is probably a waste of time as I said, because it's a crappy broker and you won't want to stay there anyway. Check the forex bastards "broker reviews."

    http://www.forexbastards.com/public/forex_broker_reviews
     
  3. AdamJ

    AdamJ Recruit

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    Some Help Please on Trading - Boko Maru

    Thanks for the tips. Looking forward to this new adventure.
     

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