How easy it is to trade - Step by step - And how to minimize risk in a trade

I want to illustrate how easy and safe it is trading at PLUS500 using the rules I use. In this post I will go through a trade step by step. The object is to illustrate how easy it is to trade at the online trading platform PLUS500 and how to minimize risk in a trade.

The steps are:

Step 1
Login to PLUS500 trading online platform.

Step 2

Use the trading rules - Fibonacci and Alligator trading - from Forex website.

Link........My Forex website

Step 3
Calculate

• Entry rate
• Auto call profit

Use one of the free Fibionacci calculators from my Forex website

Link........My Forex website

Step 4
Enter trailing profit stop

Step 5
Enter the investment and click on the buy button

Step 6
Waiting for the profit

Step 7
Want to sign-up at PLUS500 - Sign-up at PLUS500 and receive a sign-up bonus (no deposit is required) and you are ready to trade.

The trade following the 7 steps

Step 1
Login in to PLUS500.

Step 2
Pick the trade.

I picked the stock British Sky by following the rules from my Forex website – the FIBONACCI rules.

The graphs illustrates that there is change in the trend.

Step 3
Calculate entry rate and auto call profit.

I calculated the levels though my spreadsheet - my FIBAONACCI CALCULATOR. The levels are

• Entry level : 728,908
• Auto calls profit level : 731,61

The levels are the 38,2 % and 50 % levels from FIBAONACCI THEORY because I wanted to minimize my risk on this trade.

Want to learn the FIBAONACCI theory – click on this link – My Forex website

Step 4
Enter trailing profit stop.

I wanted to minimize my risk not just by choosing the levels in STEP 3 but also by entering a trailing profit stop.

At PLUS500 is a Trailing profit stop function.

A trailing profit stop is a stop that calls the profit if the rate fall the pips that have been entered as a trailing profit stop. The trailing stop is illustrated below

In the illustration I bought at rate 10. The trailing stop is set to 5 pips. My auto call could have been 21 but the rate started to fall at 20. The trailing stop is 5 and will stop the “loss” at 15. The expected profit was 11 but the rate started to fall before the auto call profit level - but there is still a profit. In this example (10 – 15) = 5.

If the rate rise to 12 and then started to fall the trade would have stopped at 7. In this case the loss would have been (10-7) = 3 but the loss could have been bigger without the trailing stop.

Step 5
Enter the investment and click on the buy button.

I entered the calculated levels and the invested amount in the British Sky stock.

In the Buy box at the trading platform PLUS500 is the entered figures.

I entered £ 1.601 and geared the trade 10 times. The investment after gearing is £ 16.008.

In step 3 I calculated that my auto call profit is at rate 731,61 and I wanted to buy if the rate was 728,908.

My trailing stop is 200 pips.

I rechecked my figures and clicked on the buy button and started to wait.

Step 6
Wait for the profit.

The statement below is the statement after the trade is close.

The statement tells us that the trailing stop call stopped the trade at rate 729,27 and that I made a profit – 57,21 DKK (in euro 57,21/7,45 = 7,68).

If the trend have been 100 % I would have earned 531, 86 DKK (in euro 531,86/7,45 = 71,4) – the 531,86 is in the buy box under “ Close if profit is” - watch step 5.

Time spent on the British Sky trade was approximately 10 – 20 minutes and the risk was low.

Step 7
Further information about Sign-up at PLUS500 and receive a sign-up bonus (no deposit is required) and you are ready to trade at the PLUS500 trading platform.....click on this link.

Please notice that your capital may be at risk trading CFD.