How to use your trading platform like a pro in Singapore

To be a successful trader, you need to use your trading platform in the most effective way possible. By following the tips provided in this article, you can start trading like a pro in Singapore.

Understand the different order types and when to use them

One of the most important aspects of trading is understanding the different order types and when to use them. You can find information like this through any reputable local broker, such as Saxotrader

The most common order types are market orders, limit orders, and stop-loss orders. Market orders are the simplest type of order used to buy or sell a security at the current market price. Limit orders are used to buy/sell a security at a specified price, which can be above/below the current market price (depending on whether you want to buy or sell).

Stop-loss orders are used to exit your trades if they move against you automatically. They are typically placed with a predefined stop level and can help prevent significant losses if the market moves against you.

How to set and use different types of orders

Another critical element of using your trading platform effectively is knowing how to set and use these different types of orders.

It’s important to understand which order type is most appropriate for your trading strategy. For example, if you are a short-term trader, limit orders may be more suitable than stop-loss orders, as they allow you to set precise entry and exit points.

Use technical analysis to identify trading opportunities

One of the most critical skills for any trader is identifying trading opportunities. Technical analysis is a tool that can be used to do this by analysing price charts to identify patterns that may indicate where the market is headed.

It’s important to remember that technical analysis is only one tool that can be used to identify trading opportunities, and it should not be relied on exclusively. It’s also good to combine technical analysis with other methods, such as fundamental analysis or news-based trading.

Place your orders quickly and accurately

Once you have identified a trading opportunity, the next step is to place your orders quickly and accurately. It can be done on most trading platforms by using the appropriate order types and entering your trade details such as quantity and price.

One mistake traders make is not setting their entry prices carefully enough to place market or limit orders. It is vital to remember that both orders can be filled at different prices, depending on market conditions, so it’s good to set your entry price close to the current market price where possible.

Another common mistake is not setting enough stop losses or other exit points. It is vital for short-term traders, as a small move in the market can quickly eat into your profits. It’s also important to remember that stop-losses are not guaranteed to be filled at your chosen price, so it’s always good to set them slightly below crucial support or resistance levels.

Monitor your account and performance regularly

It’s essential to monitor your account and performance regularly. It allows you to identify any issues with your trading strategy and changes in the market that could affect your positions.

Have a backup in case of unexpected events

No matter how well you plan and prepare, there will always be the possibility of unexpected events happening that can impact your trading. It is why it’s crucial to have a backup plan in places, such as access to alternative capital sources or stop-loss orders.