Trade Trigger Definition – What is Trade Trigger? | CFI LB

trade trigger

Whether you trade forex, commodities, or equities with CFI, there are hundreds of opportunities to place a trade whenever markets are open, therefore knowing what a trade trigger is and when to enter a trade is vital.

 

The biggest challenge is usually deciding when to place a trade and when to decide against it – the profit potential is not always equally high. A new trader must learn to evaluate each trade against certain criteria so that they can identify the right moment to place a trade in a sea of infinite trading possibilities.

 

A trade trigger helps you decide when to enter a trade. The first thing to be clear on when deciding when to enter a trade is your trading plan. Only enter trades that align with your trading strategy. After you have established that the market has the right conditions for your trading strategy, you need to have a specific trigger that tells you "now is the time to enter or exit the trade".

 

Whether the market is in an [uptrend] or [downtrend], there are specific features in each trend that provide better opportunities to trade than others. For example, after the price has moved, you may wait for a pullback, or for new highs to form. If you are bearish and you think that the trend will reverse, wait for a bearish engulfing pattern. You should always look for precise events that help you distinguish trading opportunities from the overall price movements.

 

Key takeaways:

  • A trade trigger helps you decide when to enter a trade.
  • After you have established that the market has the right conditions for your trading strategy, you need to have a specific trigger that tells you "now is the time to enter or exit the trade".
  • You should always look for precise events that help you distinguish trading opportunities from the overall price movements.
CFI Financial Group is an award winning global financial markets provider with over 23 years of experience and regulated entities in several jurisdictions, focused on offering impeccable execution and trading conditions including very low spreads, professional services, dedicated support and powerful tools.
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Credit Financier Invest - CFI LEBANON
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CFI provides execution-only services and does not provide any investment advice. To make an investment decision, you cannot rely on the content of this website, or on any information, opinion, report or other materials (“Information”) you receive from CFI, or its representatives. Such Information is general and does not consider your objectives and your financial situation, thus they shall not be considered in any way as an express or implied promise nor a guarantee of any profit or limit of loss. CFI shall not bear any liability in case you used or relied on such Information. Please ensure that you make your own research and seek independent advice if necessary.

Forex and CFDs are leveraged products that incur a high level of risk. A small adverse market movement may expose the client to lose the entire invested capital. The majority of retail client accounts lose money when trading in CFDs. Please be aware of trading risks and that you could sustain a loss exceeding your deposited funds, even if a stop loss is used.

CFI Lebanon is regulated by the Banque du Liban and the Capital Markets Authority

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