When to buy limit and when to buy stop?

Azlan00IM

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When trading with demo account, I noticed a few things. If I choose buy stop, I might lose hundreds of pips because I entered the trade late. However, I will avoid from the risk of hitting stop loss in case the price changes direction. If I choose buy limit instead, I will gain hundreds of pips because I entered the trade earlier, but if somehow the price changes direction, I will be hitting stop loss. So, I want to know, when is suitable to choose buy limit and when to choose buy stop?
 
First, don't put in a buy stop hundreds of pips above the current price. The idea of a buy stop is that if price rises to X, you expect the price to continue upwards. If that's hundreds of pips away, unless you are doing some VERY long term trading, why not look for other possible entries in the meantime?

A buy limit is when you expect price to drop and bounce off a support level. If that level is hundreds of pips away and you think there's a good chance price will go down and bounce, why not sell now and reverse your order if price follows the path you expect?
 
The main thing is that you do not give up stop-loss in principle, because now they are called to provide freedom of action in the market and suggest not to use stop-loss at all. In my opinion, this is a real sacrilege, which will lead to the fact that traders will work for good luck or will experience too much excitement if something goes wrong...
 
It is good that you are interested in such questions, now many traders somehow neglect the use of stop-loss, which is the best insurance in the market, especially for a trader with little experience and incomplete understanding of the market.
 
buy and sell orders are good if you cant be at the computer but you would be better to set alerts and look for optimal trade entry
 
First, don't put in a buy stop hundreds of pips above the current price. The idea of a buy stop is that if price rises to X, you expect the price to continue upwards. If that's hundreds of pips away, unless you are doing some VERY long term trading, why not look for other possible entries in the meantime?

A buy limit is when you expect price to drop and bounce off a support level. If that level is hundreds of pips away and you think there's a good chance price will go down and bounce, why not sell now and reverse your order if price follows the path you expect?
Basically all you need to know in this answer.
 
It seems to me that most traders in the U.S. There people have been familiar with trading since childhood and in this country, people have learned to trade long ago, while the same countries of Europe, except for Britain, later started to trade actively.
 
Well, it all comes with experience. First of all, I do not recommend giving up a stop loss, and it is a very important thing that will save you from unnecessary losses. Keep trading on a demo account, and you will start to realize that in the long run, you will get more profit from the stop loss rather than loss.
 
buy stop buy limits sell stops and sell limits are great use in trading. also a trailing sl set at a certin level will help when you are not at the computer all the time
 
Use a buy limit order when you anticipate a drop in price before a potential rebound, allowing you to buy at a lower price. On the other hand, use a buy stop order when you anticipate a breakout or an upward price movement, aiming to enter a long position once the price exceeds a specific level. Both order types help you execute trades at desired prices, but the choice depends on your market analysis and trading strategy. It's crucial to understand the mechanics and implications of each order type before using them in live trading.
 
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