You must

understand the types of orders. These orders determine when and how your trade is executed, helping you manage risk and improve your strategy.

Basic types of orders:

* Market Order: buys or sells immediately at the best available price.

* When to use it: when speed is of the essence, and you need to enter or exit a trade immediately.

* Limit Order: buys or sells at a specified price or better. Your order will only be executed when the market price reaches the limit you set.

* When to use it: for precise control over entry or exit prices, and to buy dips or take profits at a target price.

* Stop-Loss Order: automatically sells your assets if the price falls to a predetermined level, limiting potential losses.

* When to use it: always! To protect your capital from unexpected market fluctuations.

* Take-Profit Order: automatically sells your assets when they reach a predetermined profit target.

* When to use it: to secure profits when your trade goes as planned, and to avoid greed.

My personal experience:

I heavily rely on limit orders for entry and stop-loss orders for risk management. This allows me to set the risk-to-reward ratio in advance. Once, I entered a trade with a market order without setting a stop-loss, and the price dropped sharply, resulting in much larger losses than if I had used a stop-loss order.