#OrderTypes101 🚀 | Deep Dive into Trading Fundamentals 🚀
• Market Order – executes immediately at the best available price. Use when speed is the priority (breakout, emergency exit).
• Limit Order – you set the price; it only executes if the market reaches that level. Ideal for planned entries and to avoid slippage.
• Stop-Loss – turns into a market order if the price hits the trigger; cuts losses and protects your capital.
• Take-Profit – automatically takes profit at a pre-defined target; great for not emotionally “steering the wheel” when the price spikes.
How do I apply this in my daily life?
• I enter with Limit at the support zone.
• I place Stop-Loss just below that support (max. 1-2% of capital at risk).
• I set Take-Profit at resistances or use trailing when the trend is strong.
• I resort to Market only in explosive movements or to exit trades that went wrong.
Preferred? Limit – because it gives me price control and helps maintain discipline.
Real example: On March 12, 2025, BTC plummeted from US$ 62 k to 61.3 k before the FOMC. My Limit order at 61.3 k was filled at the “wick” and I raised the Stop-Loss to 60.9 k. Hours later, BTC returned to 66 k and my Take-Profit at 65 k realized a 6% profit. If I had entered at market, I would have paid ~US$ 300 in slippage — a much smaller profit.
Save this post and tag anyone still trading without a Stop-Loss! 🔔