Five ways to get the most out of your 2023 trades

These could improve your entries and exits…                                                                                                                                                                      Good Morning! Entries and exits are a critical part of trading … they can be the difference between a winning trade and a losing trade… Or between an average trade and your best trade EVER! So how can you make the most of this critical trading component? You can use a tool with options that are built into every broker. Using these can be especially useful for part-time traders and those who struggle to exit a losing position. But there are so many different types — you must know what each one does and when to use it… That’s what I’m breaking down today… Five Order Types and When To Use Them There are all kinds of order types you can use. But there are four or five common ones you must know and can focus on. Market Orders So many new traders like to use market orders because they have [FOMO](. They just want in. They don’t care about the price or waiting for a good entry. But using a market order is like giving money away. And if you have a [small account]( you can’t afford to do that. You need to get the most out of every trade. So good [entries and exits]( matter. Do yourself a favor and avoid market orders at all costs. [Learn the smart way to place stock orders here](. Limit Orders Limit orders are [the type of order every trader should use]( to get the best potential entries and exits. If you put in a limit order, you won't pay more than your limit price. If the stock hits your price and reverses lower before your order is filled, you might get a better entry, but you won't pay more. It’s the same if you use this type of order to sell. If you have a position and put in a limit price to sell, your order will execute at your limit price or better. If it blows through your sell limit price to the upside, you could get executed at a higher price. But let’s say you have a limit order to sell at $3 and the stock hits $2.99 and reverses lower … Your order won’t fill but you can still adjust your order and the price manually. You’re still in control of how much you sell for. You're not [at the mercy of the market makers]( like you would be if you used a market order. [See more about the difference between market orders and limit orders here](. Stop Limit Orders Stop limit orders add another level to your limit order. I prefer to call these stop-trigger orders. Because with this order you enter two prices — one is your stop price or trigger price, and the other is your limit price. Your stop is the price that triggers the limit order to [buy or sell](. I like to use this type of order to enter long positions. If you have to step away from your computer, this order can execute and enter a trade for you. Here’s how it works… Say you want to buy a stock if it breaks the high of the day at $3. You can place a stop price at $2.95 and when that price is hit, it sends or triggers your next order to buy if the stock hits $3. But you won’t pay more than $3. If you use this order type to sell at $3, you would set your stop price at $3.05 and your limit price at $3, so you won’t sell for less than $3. This can work great for [fast-moving penny stocks]( because you place your stop price before your limit price so it has a buffer to trigger and execute. That way it’s less likely that your limit price will get blown through without executing. Stop-Loss Orders Stop-loss orders are the most common order types traders use to exit a position when a stock hits their risk level. It’s similar to the stop limit order but you only enter one price that triggers a sell order. With a stop-loss order, you're telling your broker to get you out at any price after your stop price is hit. If your stop loss is set at $3, your order will trigger when the stock hits that price, then your order becomes a market order and could execute at any price below $3. [Watch this video for my top tips for using stop-loss orders](. Trailing Stops A trailing stop-loss order follows the stock as it climbs higher. It can help you lock in profits at a higher price, rather than setting one stop loss order at your risk level and losing out on potential profits. This order type is good for trades you don’t want to micromanage — like a [swing trade](. Say you’re in a long position on a morning red-to-green move. The stock continues higher and you have a nice gain. But you think it can go higher over the next few days… You can set a trailing stop loss order, say 5% from the stock's recent high. And if the stock dips 5% from the recent high, it executes a sell order and you’re out. But if the stock goes higher without hitting your stop, the trailing stop follows it up, always staying 5% below recent highs. This type of stop isn’t good for volatile [day trades](. The stocks have too much range and wild price moves. Trailing stops are best to use on slow-moving ‘real’ stocks and are more useful for [swing trade positions](. [Learn more about trailing stops here](. Day traders and swing traders should get familiar with all order types and when to use them. They’re especially useful for part-time traders who can’t micromanage their positions all day. You can [get my FREE guide to part-time trading here](. Hope this helps you determine the right order types to use to get the most out of your trading this year. Have a great day everyone! See you back here tomorrow. Tim Bohen Lead Trainer, StocksToTrade   sponsored   sponsored   [Former Accountant Claims This Strategy Made Him Richer, Faster]( Accountants make a lot of money… right? Well, not so fast. Because according to this former accountant, [his salary didn’t even come close to the profit potential from this options trading strategy.]( [Click here and uncover the answer for yourself – (I think you’ll be shocked)]( Recommended Membership Gifts   ACCESS NOW: Click to activate these complimentary membership gifts and receive daily market intel. [To The Moon Report Weekly Stock & Crypto Watchlist]( [Mark Croock Evolved Trader Daily](   [Facebook]( [Twitter]( [Instagram]( [YouTube]( [Spotify]( [Click Here to Unsubscribe]( (As an Amazon Associate, we earn from qualifying purchases.) 13809 Research Boulevard, Suite 500, Austin, TX 78750 *Please note that these kinds of trading results are not typical. Most traders lose money. It takes years of dedication, hard work, and discipline to learn how to trade, and individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose. This is for informational purposes only as StocksToTrade is not registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. StocksToTrade cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. StocksToTrade in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, StocksToTrade accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns. Copyright © StocksToTrade.com