Yes, a Limit Order is a limit order where you specify the price at which you want to buy or sell, and it only executes when the market reaches your specified price.
How do you use orders when buying a currency at the beginning of its rise?
When you see a currency starting to rise and you want to enter the trade, these are the ideal orders for each stage:
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1️⃣ Buy Orders (when entering a trade)
(A) Limit Order to buy at support
- When do you use it?
- When you want to buy at a specific price (for example, if you are waiting for the price to drop a bit before rising).
- Example:
- The currency PEPE is now at 0.000011, and you expect it to rise.
- You place a Limit Order to buy at 0.0000105 (wait until it drops a little and then rebounds).
- If the price reaches 0.0000105, it buys automatically.
(B) Stop-Limit Order (buying upon breaking resistance)
- When do you use it?
- When you want to buy after confirming the rise (only buy if the price breaks a certain level).
- Example:
- The currency SOL is at $150, and resistance is at $155.
- You set a Stop-Limit Order:
- Stop Price: 155 (if the price reaches here, the order is activated).
- Limit Price: 156 (you buy if the price reaches 156 after the break).
- This ensures you only buy if the price breaks the resistance and rises.
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2️⃣ Sell Orders (to protect profits or exit)
(A) Take-Profit Order
- When do you use it?
- When you want to sell part or all of the amount at a specific profit.
- Example:
- You bought SHIB at 0.000025 and want to sell at 0.000030 (+20%).
- You set a Take-Profit Limit at 0.000030.
- If the price reaches 0.000030, it sells automatically.
(B) Stop-Loss Order (capital protection)
- When do you use it?
- When you want to exit if the price drops by a certain percentage (to avoid large losses).
- Example:
- You bought BTC at $60,000, and you don't want to lose more than 5%.
- Set Stop-Loss at $57,000 (-5%).
- If the price drops to 57,000, it sells automatically.
(C) Trailing Stop Order (tracking the rise and automatically taking profits)
- When do you use it?
- When the currency is in a strong rise, and you want to take advantage of the rise while protecting profits.
- Example:
- You bought WIF at $2 and set Trailing Stop at 10%.
- If the price rises to $3, the Stop-Loss automatically moves to $2.7 (3 - 10%).
- If the price drops from $3 to $2.7, it sells automatically (35% profit).
🎯 The best order strategy when trading rising currencies
1. Entry:
- Use a Limit Order if you want to buy at a specific price.
- Or use a Stop-Limit Order if you want to buy after breaking resistance.
2. Exit:
- Set Take-Profit at expected resistance levels (for example +10%, +20%).
- Set Stop-Loss at -5% to -7% (depending on your risk tolerance).
- Use Trailing Stop if the trend is strongly rising.
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📉 Practical Example (Trading a Rising Currency)
- Buying:
- You see that NOT has started to rise from $0.005.
- You set a Stop-Limit Order:
- Stop Price: 0.0055 (if it breaks this level).
- Limit Price: 0.0056 (actual buying price).
- Selling:
- You set Take-Profit at 0.007 (+25%).
- Set Stop-Loss at 0.005 (-10%).
- If the rise continues, activate Trailing Stop at 15%.
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💡 Important Tips:
✅ Do not put all your capital in one trade (diversify risks).
✅ Use technical analysis (support/resistance, RSI, MACD) to determine entry and exit points.
✅ Try these strategies on a demo account first (like Binance Futures Testnet).
> "Successful trading is not about buying and selling, but about managing orders and risks wisely!" 🚀
