Hi traders. Do you typically use limit orders or stop orders to enter trades? The way I see it is limit orders are used for buying or selling value whereas stop orders are used to buy or sell strength.
I only use stop orders. A limit order is triggered when price starts moving away from where you want it to go.
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I had to unlearn limit order trading. I now use stop orders only as well.
my answer’s the same as Tommor’s, above
(be aware, if you’re not already, that some brokerages and some websites use the expression “limit orders” with a slightly different meaning from others; some consider all orders to be either “market” or “limit” and then subdivide “limit” further into categories one of which is “stop orders” - i mention it only because this semantic point apparently causes quite a lot of confusion at Babypips!)
sadly for me i need to learn both because i only use market orders
I use pending orders instead of market orders. I feel like I have more time to think about what I’m doing.
Yeah, that’s a good way to put it. Another way is to think of limit orders as being good in ranging markets, whereas stop orders are typically suitable for faster-moving trends. Just an idea.
Also, for limiting orders, you’re betting on the market reversing once the order triggers, whereas for stop orders, you’re betting on a continuation.