#OrderTypes101
Crypto Trading Essentials
Understanding order types is key to effective crypto trading and risk management.
* Market Order: Buy/sell immediately at the best available price. Use for speed when urgency outweighs minor price differences.
* Limit Order: Buy/sell at a specific price or better. Use for precise entry/exit points, like buying dips or taking profit.
* Stop-Loss Order: Automatically sells to limit losses if the price drops to a set level. Always use this to protect your capital.
* Take-Profit Order: Automatically sells to secure gains when the price hits your target. Use to lock in profits.
My Approach
I primarily use Limit Orders for entries and Stop-Loss Orders for risk management. I'll only use a Market Order for urgent, high-conviction trades.
Real-World Lesson
I once used a Market Order without a Stop-Loss, missing a better entry price and enduring significant losses when the market dipped. This taught me the critical importance of careful entries and strict risk management.