Order Types

You guys have been doing a good job of asking questions. Many of which it simply wouldn’t have occurred to me to answer. Not because they aren’t good questions, but because they’ve become so second nature to me that I don’t even think about them. These things will all become that way to you too—it just takes time and practice, like anything.

So today I’ll do a quick review of the different order types. I’m going to stick with a simple example of buying a stock. Maybe in the future you’ll short stock, but that should be quite a ways down the line. After you buy the stock what are you going to do with it when you need to run to the store? Place a sell stop? Okay, so I’ll run through those quickly. Let me know if you have questions.

One thought on “Order Types

  • Hi,
    so for trailing stop… I understand that you’d set a % of loss that you’re ok with, but is this typically some number (10-15%)? Or is it completely stock dependent? I’m thinking a moody stock will be cutting your profits too easy so is this a process you do per trade?

    Also I read somewhere (chances it was in your book, Pat) that stop orders at a round number are not a good idea (35.00) because you can get “fished” out of the trade?.
    Thanks!

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