Trade Stocks Trading

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Entry Stock Trading Order in Stock and Limit Stock Trading Order in Stock

Limit order definition - Entry limit is an order to buy or sell a Stock at a certain stocks price which is a retracement level where stocks price is predicted to pullback to before resuming the original Stock trend. Stock traders use them to buy or sell at better market stock price. These types of orders are available in most online trading platforms, for our example we will use the MT4 stocks trading platform.


An entry of this type can be used to buy below the stocks trading market level (up stock trend market retracement) or sell above the stocks trading market level (down stock trend stock market retracement).


Buy limit - When buying, your entry buy limit is executed when the stocks trading market falls to your set stock price. (retraces down)


Sell limit - When selling, your entry sell limit is executed when the stocks trading market rises to your set stock price. (retraces up)


Entry orders are placed by stock traders when they expect stocks price to bounce back after reaching this level.


  • Entry Buy Limit Stock Trading Order
    buy at a level below the current market level.


  • Entry Sell Limit Stock Trading Order
    sell at a level above the current market level.


Buy Entry Limit Example

In the stocks trading example explained below, the buy limit stock order was placed to buy at a stock price below the current market stock price. Point B is the point at which it was set.

Limit Buy Order Entry Placed to Buy Below the Current Market Stock Price

Limit buy order entry placed to buy below the current market stock price



The stocks price then retraced and went down to hit the buy entry limit, and afterwards stocks price continued to move upwards in the direction of the original Stock upward stocks trend. When the limit buy order was hit it changed to a buy.

Stock Price Hits Buy Limit Stock Trading Order, Order Now Changes to a Buy

Stock Price hits buy limit, order now changes to a buy



Sell Entry Limit Stock Trading Order

In the stocks trading example explained below a the sell entry limit was placed to sell at a stock price above the current market stock price. This is the level for the stocks price retracement.

entry limit sell order placed to sell above the current market stock price

Entry limit sell order placed to sell above the current market stock price


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The stocks price then rallied, went up to hit the sell entry limit, and afterwards stocks price continued to move downwards in the direction of the original Stocks downward trend.

Stock Price Hits Sell Limit Stock Trading Order, Order Now Changes to a Sell

Stock Price hits sell limit, order now changes to a sell


When stock trading quote hit the set level the order changed to a sell, this is therefore a nice method to buy or sell at a better stocks price after a retracement.



Setting Buy and Sell Limit Stock Trading Orders on MT4

To set up these stock orders on the MT4 stocks trading platform, Right click on Stock chart>> Select "Trading">> Then Select "New">> Then on the popup window that appears (shown below), under the label "Type" select the option of "pending" instead of "market execution">> Under the pending stocks trading order options select the pending stock order type: For This trade select either "Buy Limit Stock Trading Order" or "Sell Limit Stock Trading Order" depending on whether you want to place a pending buy or sell.

Setting Buy and Sell Limit Stock Trading Orders on MT4

Setting Buy and Sell Limit Stock Trading Orders on MT4


Sometimes, setting the point value to place your trade can be tricky, setting to far might mean your entry market limit not getting executed, the best tool to use is Fibonacci retracement indicator and use the 38.2 % retracement levels. This retracement level is watched by many stock traders and entry orders tend to crowd at this level, therefore the best odds to catch a trade would be presented by using the 38.2% Fibonacci retracement level.


Fibonacci Retracement Tutorial - Stock Trading Fibonacci Retracement Tutorial


Tip: In Stock online trading, If you want to set a good take profit level (not retracement level, take profit level) for your trades you can use the Fibonacci expansion 100% level for the best take profit area. To Read more on Stock Trading Fibonacci Retracement and Fibonacci expansion use the right navigation menu section Technical Analysis.


Stock Trading Fibonacci Expansion Tool Tutorial - Stock Trading Fibonacci Expansion Tool Tutorial

 

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