#OrderTypes101

Today I share a quick guide on the most common types of orders in trading and how to use them to maximize your profits and minimize risks.

🔹 Market Orders:

They are executed at the current market price. They are quick and ensure that the order is completed, but the price may vary if the market is volatile.

➡ Use when I want to enter or exit quickly without waiting.

🔹 Limit Orders:

You set a specific price to buy or sell. The order only executes if the market reaches that price.

➡ Ideal for buying low or selling high, but it may not execute if the market does not reach that price.

🔹 Stop-Loss:

Automatic order to sell (or buy short) when the price hits a defined level, limiting losses.

➡ Essential to protect your investment against unexpected drops.

🔹 Take-Profit:

Automatic order to close a position with profit when the price reaches a target.

➡ Perfect for securing profits without having to be on alert all the time.

✨ My preferred order: The combination of Stop-Loss and Take-Profit, because it allows me to trade with discipline and reduce the stress of constantly monitoring the market.

📈 Real example:

Recently, I bought ETH with a limit order at a low price. To protect my investment, I placed a Stop-Loss just below support and a Take-Profit near a key resistance. Thus, when ETH went up, I closed with profit, and if it went down, the Stop-Loss saved me from a larger loss. That strategy helped me sleep well and secure a good outcome.

💡 Tip: Always define your risk and profit levels before entering a trade. The right type of order can make the difference between winning or losing!