#OrderTypes101
Trading without understanding order types is like going to war with a water gun.
The market is wild, and the order is your weapon. But which one will you choose: a sniper's knife or a hammer?
I break down the types of orders, when to use them, and how they saved meโฆ or sank me:
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๐น Market Order: โbuy at any priceโ
๐ When you urgently need to enter a trade โ you go in at the current price, no questions.
โ Fast
โ You can buy higher/sell lower than you planned โ especially on low-liquidity pairs.
๐ My fail: once I bought a small alt at market price. The price jumped +7% in a second because there was no depth in the order book. I savored losses like old port wine.
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๐น Limit Order: โeither at this price, or not at allโ
๐ง You set your buying/selling price. If the market touches it โ the order will execute.
โ Full control over the price
โ May not execute at all if the price doesnโt reach.
๐ My favorite type of order: I set a limit order higher for selling, lower for buying. And I catch candles like a fisherman catches pike ๐
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๐น Stop-Loss Order: โI want to liveโ
๐จ Automatically sells the asset if the price drops to a certain level. It's like a safety cushion in a car.
โ Protection from collapse
โ May trigger on a false breakout (especially in a โwild crypto morningโ)
๐ Real story: if I had set a stop-loss on Terra (LUNA) in 2022 โ I would have saved $400. But I โbelieved in the projectโโฆ ๐ตโ๐ซ
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๐น Take-Profit Order: โlocking in, and going to drinkโ
๐ฏ Automatic sale when the price reaches your target. Especially useful if you can't sit in front of the chart 24/7.
โ Profit locking
โ May close the trade before a massive pump (but profit is profit)
๐ My plus: when I was asleep, TP sold my STX +35%. I woke up richer. And happy.
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๐ค Combo orders: pro-hack
Some exchanges allow you to set Stop-Loss + Take-Profit at the same time. This is top-notch. You enter a trade โ and immediately set "activate profit or save your skin."
