In the Forex marketyou find two kinds of orders that traders employ, in connection to taking a position in the current market place, Passive and Aggressive.

Passive

These are orders that are placed in the market using a buy/sell limit. Basically a trader will identify a trade according to ones strategy and place an order. If the price reaches the level, your order will be filled.

Many traders have created systems where passive orders play an important part. Self-belief and persistence are the key pre requisite for this kind of method. The great thing here is that you are willing to ignore a trade if the price does not reach your pre defined level. By conducting this principle will prevent you from trying to catch a trading position. A large number of losing trades are credited to attempting to enter trades that may have already achieved its short term move.

Speculators that utilise thisprocess, enter or exit trades using a market order. They are normallycomfortableabout the current level, by executing the trade at the best price. If the investor has small experience, you willtend to find the majority of trades are instructed onemotion rather than a structured trading plan.

Professional traders that utilise this process, enter or exit trades using a market order. They are generally confident about the current level, by executing the trade at the best price. If the investor has small experience, you will tend to find the majority of trades are instructed on impulse rather than a structured trading plan.

Watch the first part of the Profitable Passive Forex Trading Setup part 1, to see what techniques I used to execute my trading plan. The trade was on the EUR/USD 30 minute timeframe. You will gain a better understand the thought process behind why I enter trades and the risk management involved.

Entering the trade is only the first hurdle in the direction of striving for trading success. Keep your eye out for part 2 of this live trade, to see whether the trade completed and reached my profit target and most importantly, how I managed the risk element of the position.

To find out more and watch the informative video, please go Profitable Passive Forex Setup

Tags: Currency Trading, passive, Profitable

This entry was posted on Friday, February 10th, 2012 at 9:47 pm and is filed under Currency Trading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.