#OrderTypes101 imagine you are on restaurant,
1. Market Order
You say
I’m hungry, Give me food now.
You don’t care about the price. You just want to buy or sell fast.
But the price might be too high or too low. Too late you already paid.
2. Limit Order
You say
I’ll buy this only if it’s cheap.
You wait for the price you want. If the price doesn’t come down, nothing happens.
So… you wait. And wait...
3. Stop-Loss Order
You say
If the price drops too much, sell it fast!
This helps you not lose more money. You lose small, not big.
4. Take-Profit Order
You say
If the price goes up, sell and give me my profit!
This helps you take your profit before the price drops again.
So Don’t mix stop-loss with take profit.
Or you will sell at loss and cry while watching price go up.
Which one do you use most?
Comment below and tag a friend who always buys at the top.
