How To Best Use Limit Orders And Set Up a Live Account in Forex Trading

Podcast: How To Best Use Limit Orders And Set Up a Live Account in Forex Trading In this video: 00:57 What I love about the limit order? 02:29 When Not To Take A Limit Order 04:42 What to do between demo and live account? I'm going to share with you some information about how to best use limit orders and also how to choose a broker and transition from a demo account through to a live account, so let's get into it. Hi Forex traders, it's Andrew Mitchem here the Forex trading coach and today is Friday the 28th of August. I've got two questions that have been sent through that I'd like to discuss on this video and podcast. The first one is here from Raphael and Raphael says, “Andrew, I've been watching you on YouTube, love your videos, love your work, but I'd like to ask you a question about the best use of limit orders, how to use them.” I actually use limit orders quite a lot within my trading and it's generally for the longer timeframe chart, so I use them personally for anything from four hours and above. That can be a six hour charts, 12 hours, daily, weekly, even monthly charts. What I love about the limit order? What I love about the limit order, is it actually fills you at a better price than the current market order. Now if you are taking buy trades for example, rather than entering up here at the market order, saying, I'm placing an order below the current price to buy. If the market retraces back to that level, it fills me for a buy trade and then I'm anticipating it's going to move upwards. Exactly the same, but in reverse for a sell trade. Now the benefits of many, of course you get filled at a better price and if you know what you're doing and you have your entry at a certain level, then the majority of the time you get the price filled. What it also does is, it generally increases the return that you make from your traders and it's in the higher reward to risk, because it means that generally you have maybe a smaller stop loss than if you'd placed your trade at the market and therefore you have potentially, because you're getting in at a better price, and potentially a far greater gain as a percentage of your stop loss, so a higher return from your trade. It also means, another great thing is, you don't have to be there right at the time, at the market, at your computer, to place the trade because, let's say you're trading let's say a four hour chart with a limit order as a retracement entry, you don't have to be there at the close of the four hour chart. You could come a little bit later and say, well it's still not moved back to my entry order but I'm now placing that limit order at this lower level looking for, anticipating the market is going to pull back. I actually love taking limit orders. When not to take a limit order? The only time I wouldn't really take a limit order is anything on a shorter timeframe chart of let's say one hour or shorter, because really, let's say if you're trading a 15 minute chart, you're pretty much most of the time want to be in at the market straight away as a market order because you're really trying to ride the momentum in the market at that time to best make use of a 15 minute or even a five minute chart. Use limit orders for the longer timeframe charts. The second question that I've got here is from Patrick and Patrick says, "Hey Andrew have you any tips or recommendations in setting up a live account. I've been practicing for the last two to three months on a demo, I'm now ready to go live but I've just heard a few stories about brokers. How can you help me?" Patrick, first of all you've been trading two to three months on a demo before you go live. That's really good because use a demo account to iron out all those mistakes,