Skip to content Many beginners think that entering a position is as simple as clicking on «buy» or «sell». In reality, taking a position intelligently requires meticulous preparation and a perfect understanding of the different types of orders available.
Important information: Trading involves risks of capital loss. This article is educational and does not constitute investment advice. Trade only with money you can afford to lose.
In this guide, you'll discover :
A long position consists of buying an asset in the hope that its price will rise. You are long this asset.
Case in point:
When to go long :
A short position consists of selling an asset in the hope that its price will fall. You are short this asset.
How it works : With Forex and CFDs, you can sell an asset without owning it. Technically, your broker allows you to take a short position, and you profit from the falling price.
Case in point:
In Forex, each pair has two prices:
The difference between these two prices is called the spread, This is your broker's indirect commission.
To remember:
MT4 platform overview
The risk of making an unprepared position is that you haven't taken one of our training courses. Here are the essential steps before clicking on «buy» or «sell».
Before taking any position, you must have a valid reason for trading based on solid analysis, not intuition.
Technical analysis signals :
Fundamental analysis signals :
Golden rule: Never take a position without at least 2-3 elements to back up your analysis.
Before entering a position, you MUST calculate how much you're willing to lose on this trade. This is non-negotiable.
Calculation steps :
Example with batch calculator :
At Xenesy, we recommend the systematic use of a batch calculator to avoid sizing errors that can quickly destroy an account.
Your exit plan must be defined BEFORE you enter the position. Once in position, emotions take over and distort your judgment.
Elements to be defined :
Common exit strategies :
Understanding the different types of orders is crucial to executing your strategy efficiently.
The market order is the simplest order: you buy or sell immediately at the posted price.
Advantages :
Disadvantages :
When to use it :
Watch out for slippage: In times of news or high volatility, your order may be executed at a different price than the one displayed.
These conditional orders allow you to enter a position at a specific price, even when you're away from your screen.
Limit order :
Example: EUR/USD is at 1.1000. You place a limit buy order at 1.0980. The order will be executed only if the price falls to 1.0980 or below.
Stop order :
Example: EUR/USD at 1.1000 with resistance at 1.1020. You place a stop order at 1.1025 to enter if resistance is broken.
Stop limit order : Combines stop and limit orders. The order becomes a limit order (not a market order) when the trigger price is reached.
Trailing stop : Stop loss that follows the price in a favorable direction. Allows you to capture a trend while limiting losses. Very useful for letting your gains run without constant monitoring.
OCO (One Cancels Other) order: Two linked orders: when one is executed, the other is automatically cancelled.
Example OCO : EUR/USD at 1.1000 in a zone of indecision.
MT4 platform overview
Why it's tempting:
Why it's dangerous:
Professional approach: Place your stop losses and take profits at the opening, then check them no more than 2-3 times a day. Concentrate on analyzing new opportunities.
Dangerous modifications :
Why resist :
The only acceptable modifications :
Sometimes, manually closing an open position is justified.
Valid reasons :
How to fence :
Here is the complete process for opening a position on MetaTrader 4.
Step 1: Preparation
Step 2: Opening the order
Step 3: Validation
Stage 4: Management
Advice : Start with micro-lots (0.01) to familiarize yourself before increasing your position size.
After hundreds of positions, here's what I've learned about the art of entering a position effectively.
The error of my ways
For the first few months, I used market orders exclusively out of impatience. The result: discovery of slippage, entries at the wrong price, frustration. When I started using limit orders for my planned entries, my success rate improved by 15%.
My current routine
I never click on «buy» or «sell» without :
The type of order I prefer
70% of my positions use deferred orders. I can wait for the best price without stress. The remaining 30% are market orders, only if the market situation and my technical analysis allow it.
Taking a trading position isn't just a click. It's a methodical process combining analysis, preparation, calculations and disciplined execution.
What you've mastered :
In our trading course for beginners, an entire module is dedicated to position entry management. You'll learn how to choose the right type of order, size your position according to your capital and manage your exits efficiently, with personalized guidance.
Next steps: To improve, combine these position entries with a structured trading strategy and rigorous risk management.
Remember: every position taken must be the result of serious analysis and impeccable risk management. That's how you create profitable trading plans over the long term.
Jonathan Bardon
An independent pro trader since 2012 and an Ichimoku expert since 2017, Jo is our trading trainer at the training center. Xenesy.
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