how do i place stop and limit orders in when trading

Age : 30 Joined : 14 Jan 2008 Posts : 4 Location : lekki

Good morning all,i've been having issues on the placing of stops and limit orders when demo trading.like the one where stalion said to place buy stop above a price.how does that work and how do i know how to use it while there is movement in price?thank you

Joined : 23 Dec 2007 Posts : 217 Location : Nigeria

hi, segun,
You could liken buy stops and sell stops as continuation orders,while buy limits and sell limits would be likened to reversal orders.
BUY STOPS:The current price level is lower than the value of the placed order. Orders of this type are usually placed in anticipation of that the security price, having reached a certain level, will keep on increasing; SO IT IS USED DURING AN UPTREND.

SELL STOPS:. The current price level is higher than the value of the placed order. Orders of this type are usually placed in anticipation of that the security price, having reached a certain level, will keep on falling, SO IT IS USED DURING A DOWNTREND.

BUY LIMITS — . The current price level is higher than the value of the placed order. Orders of this type are usually placed in anticipation of that the security price, having fallen to a certain level, will increase;SO IT IS USED IN A DOWNTREND REVERSAL.

SELL LIMITS:. The current price level is lower than the value of the placed order. Orders of this type are usually placed in anticipation of that the security price, having increased to a certain level, will fall;SO IT IS USED IN AN UPTREND REVERSAL.

Hope you now understand how to use these major order types to get into a trade,mon ami.

Feel free to ask questions

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Age : 25 Joined : 17 Jan 2008 Posts : 3 Location : ibadan

ok, so now, how do we use it to make money?