Trade Trigger Definition – What is Trade Trigger? | CFI

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.
Credit Financier Invest (Mauritius) Ltd 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.
Credit Financier Invest (Mauritius) Ltd has regulated subsidiaries in
London • Larnaca • Beirut • Amman • Dubai • Port Louis
Credit Financier Invest

Important Disclaimer:


We would like to remind that while we endeavour to provide best possible services, CFI provides execution only services and any information, reports, opinions, commentary or other materials he receives from CFI directly or from its employees or through any analytical tools provided to him or third party research provided to him from the Company shall not be deemed as investment advice and it cannot be relied upon to make investment decisions. The Client commits to make his own research and from external sources as well to make any investment. The Client accepts that CFI will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The contents of any report provided should not be construed as an express or implied promise, as a guarantee or implication that clients will profit from the strategies herein, or as a guarantee that losses in connection therewith can, or will be limited.


Forex and CFDs are leveraged products that incur a high level of risk and a small adverse market movement may expose the client to lose the entire invested capital. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. The possibility exists that you could sustain a loss in excess of your deposited funds even if a stop loss is used and therefore, you should not speculate with capital that you cannot afford to lose and be aware of trading risks. Credit Financier Invest (Mauritius) Ltd provides general information that does not take into account your objectives, financial situation or needs. The content of this website must not be interpreted as personal advice. Please ensure that you understand the risks involved and seek independent advice if necessary.

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