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Trading orders 101: Everything you need to know
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A checklist for traders when placing orders
01:07 Mins Read
This video gives you a quick checklist you can refer to before placing orders in the market.
Before you place an order in the markets, ask yourself these 3 questions. Firstly, do you expect any significant level of support or resistance nearby? This will help you understand if you should enter, hold, or exit a position. Secondly, how much capital are you risking? If you’re not careful, one unplanned trade could erode most or all of your capital. Using stop losses can help you avoid this. Finally, what is the risk to reward ratio like? A 1:1 risk to reward ratio may sound like a good idea, but it’s not always the ideal situation. A 1:2 risk to reward ratio may present a better scenario for traders. And this wraps up our checklist for traders. But there’s a lot more to learn about the markets. Keep the journey going with Smart Money.