Difference between buy limit, sell limit, buy stop, and sell stop?
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Thread: Difference between buy limit, sell limit, buy stop, and sell stop?

  1. #1
    jiSutru
    Guest
    Hi all

    I have been doing some trading on short time frames and have been doing market execution trades. But recently after reading some forum posts I've decided I must try rather more time frames like 1h. But I have now understood it is better to set up pending orders if certain criteria are met such ass when the price drops to a certain value then only market. Now I look at buy limit, sell limitation, buy stop and sell stop.
    Now I understand that should I would like to buy in a future trade I would use a buy limitation or buy stop but now I am not sure how these order executions work and what the advantage or disadvantage of each is. Could we explain this. Thank you a lot.

  2. #2
    Since Mitch pointed out, the answer's all here and furthermore, using ceases is an essential part of most trading egies. Check out the links Mitch provided and they should give you all the information you want and of course, feel free to post additional queries. .

  3. #3
    Esndy
    Guest
    BL, BS, SL, SS would be the four types of orders you want to set up your pending orders.

    I've a movie with me using a number of them in my youtube which can be retrieved through my thread

    https://www.forexforum.co.za/general...framework.html

    There are also a lot of different videos on youtube moving into detail about those types of orders.

  4. #4
    KuTksCaku
    Guest
    Now you know how buy/sell stop/limit orders technically work, you want to think how to use them on your trading...

    Let's state the setup you trade will be price action (e.g. a pinbar or alternative candle pattern), in an integral level (e.g. support / resistance, or Fibo retracement, or supply/demand), in line with the tendency (e.g. characterized by the incline of EMA)... ok, so how will you utilize stop or limit orders?

    If you decide to use a limit order, you will find a better entry price, therefore it will be a lot easier to get a good reward to risk ratio.
    But should you utilize limit order you will always be satisfied if the market moves against you.
    And you may miss the best trades, if the market goes in the direction of your planned trade. (e.g. price was 100, you wanted to buy at 95, but the market immidiately went around 110).

    On the flip side, if you use a stop order (e.g. trade long on the rest of the top of the previous pub, i.e. you buy if the price is greater ), then your trade has a greater win odds because the price is moving in the direction of your trade, however... as your entry level is worse, becoming a good R-rati is more difficult.

    So, you want to consider these pros and cons.

  5. #5
    All you needed to do was research here and you'd have found your response.

    Don't worry I've nothing better to do, than to do this for you. Knowing that my support will one day make you a successful trader is all that I need to know

    https://www.forexforum.co.za/general...rts-ascii.html

    https://www.forexforum.co.za/trading...o-journal.html



    P.S try trading off the four hr and Daily instead of the 1 hr and beneath.

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