limit, market, stop, stop limit, trailing stop,
you know that trailing stop is not an order to buy and sell, right?
They each have their own usefulness according to the situation and what you are trying to do, so you decide which is best for your situation according to your strategy.
For example, if you wish to buy a stock which is rising in an uptrend, you can decide whether to wait for the price to fall a little and then set a buy stop order above where price has fallen to, or you can decide not to wait ofr the price to fall back at all, but to set a buy stop order above where price is now, perhaps above a recent high which you think might be a resistance level.
The important thing is to find a strategy and then use it according to the strategy’s logic and rules.
1 Like
If the trade mindset is to buy & uses a limit - there is the risk of no fill & price continues upward - .ie the mindset is correct but no trade.
The 2nd thing about limits on a specific stock - the trade, if filled, is guaranteed to be against the immediate direction of price
The advantage of limit is limited to getting a better price than a stop - nice when right.
Limit orders and stop orders are the best as I believe, which one you choose totally depends on your trading strategy. check the details for these two (these are the only ones that get filled in the exact price that you set)