Orders Flashcards
What are the 4 Order Types?
Stop Orders, Limit Orders, Bracket Orders & Market Orders
What is the most important Order for all Trades?
The Protective Stop Order
Beginners hate to admit they are wrong, they do not want to take a loss and are afraid their account will disappear. “Death of a dream of being a successful trader”
Beginners hate to admit they are wrong, they do not want to take a loss and are afraid their account will disappear. “Death of a dream of being a successful trader”
Protect yourself from the unknowable; Black Swan(s) events. Brokers are not built to protect Traders from these types of events as they’re unforeseeable events. Brokers will deny this but it is true
Protect yourself from the unknowable; Black Swan(s) events. Brokers are not built to protect Traders from these types of events as they’re unforeseeable events. Brokers will deny this but it is true
Protective Stop - a Gap can Lead to No Protection!
Result
Using a Limit Order to Take Profits or to Enter a Trade
Using a Limit Order to Take Profits or to Enter a Trade
What are Bracket Orders used for?
To Take Profits and to Minimize Loss. They are also called “OCO” (“Order Cancels Order” or “One Cancels Other”)
Bracket Order for Short - Take Profits and Minimize Loss
Bracket Order for Short - Take Profits and Minimize Loss
Bracket Order for Long - Take Profits and Minimize Loss
Bracket Order for Long - Take Profits and Minimize Loss
Most Traders should only be entering with Stop Orders and using a Stop/Limit Order to exit
Most Traders should only be entering with Stop Orders and using a Stop/Limit Order to exit
Sometimes a Trader has to make a quick decision to exit to enter and to immediately do that and not wait for a stop/limit to be filled Traders with opt to use a Market Order
Sometimes a Trader has to make a quick decision to exit to enter and to immediately do that and not wait for a stop/limit to be filled Traders with opt to use a Market Order
Market Order - To Enter a Trade
Market Order - To Enter a Trade
Market Order - To Exit a Trade
Market Order - To Exit a Trade
Other Orders - Many Brokers Offer Many Order Types
Other Orders - Many Brokers Offer Many Order Types
It is important to understand that Brokers are “Not Held”, Mistakes are ALWAYS Your Fault
It is important to understand that Brokers are “Not Held”, Mistakes are ALWAYS Your Fault
Entering a Trade using a Stop Order - This allows me to enter the market into a Trade going my way
Entering a Trade using a Stop Order - This allows me to enter the market into a Trade going my way
Stop Orders are Best in Trends and Bad in Tight Trading Ranges (Market going sideways = Limit Order Market)
Stop Orders are Best in Trends and Bad in Tight Trading Ranges (Market going sideways = Limit Order Market)
Skilled Traders - Also Enter with Market and Limit Orders
Skilled Traders - Also Enter with Market and Limit Orders
Entering a Trade with Limit Orders
Entering a Trade with Limit Orders
If it is a Bad spot for a Stop Order does that mean is Good for a Limit Order?
Yes it does mean it is good for Limit Orders; When the market makes no sense for Stop Orders it means we are in a Limit Order Market
Stop Orders and Limit Orders are EQUAL and OPPOSITE
Stop Orders and Limit Orders are EQUAL and OPPOSITE
What is better a Stop Order or a Limit Order?
They are equally effective
Trends - Types of Orders
Trends - Types of Orders
What kind of Order Market is a TR?
a TR is a Limit Order Market, BLSHS
Entering with Limit Orders to trade in Direction of Trend
Entering with Limit Orders to trade in Direction of Trend
What dictates the Type of Entry I use to enter the market?
Price Action dictates type of Entry Order I use
When I am in doubt what are 3 choices I have?
- Wait for 2nd or 3rd signal with good signal bar
- Wait for Strong BO with follow-through
- Stay out and wait
Entering with Limit Orders to trade Against Direction of Trend (Counter Trend Trading)
Entering with Limit Orders to trade Against Direction of Trend (Counter Trend Trading)
Limit Orders in TR
Limit Orders in TR
Entering Earlier on a Smaller Timeframe; if the context is good I can enter early on a smaller Timeframe. Some Traders cannot emotionally take the trade on the Strong BO therefore going to a smaller TF chart helps
Entering Earlier on a Smaller Timeframe; if the context is good I can enter early on a smaller Timeframe. Some Traders cannot emotionally take the trade on the Strong BO therefore going to a smaller TF chart helps
Limit Orders in a Wedge or Measured Move (on the MM some traders Place a Limit or to sell at the Top of the MM as it is also at the top of the TR) and much more Limit Order examples on this chart
Limit Orders in a Wedge or Measured Move (on the MM some traders Place a Limit or to sell at the Top of the MM as it is also at the top of the TR) and much more Limit Order examples on this chart
Channel Evolving into a TR
Channel Evolving into a TR
Entering Earlier on a Smaller Timeframe; if the context is good I can enter early on a smaller Timeframe. Some Traders cannot emotionally take the trade on the Strong BO therefore going to a smaller TF chart helps
Entering Earlier on a Smaller Timeframe; if the context is good I can enter early on a smaller Timeframe. Some Traders cannot emotionally take the trade on the Strong BO therefore going to a smaller TF chart helps
