Using a Stop Order to Enter a Trade: Buy Stop vs Sell Stop 👍

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Using a Stop Order to Enter a Trade: Buy Stop vs Sell Stop. How is a stop-loss order used to enter a new position? When would you use a stop order to enter a trade? This might be a contradiction particularly if you're a new trader. Most stop orders are used to 'stop losses'. OK.

Trading Strategy, Buy Stop vs Sell Stop: Which Order to Use?

But how could you use a stop order to enter a trade and why would you want to do that? A buy limit order might not achieve what you want. By placing a 'buy stop' this can allow to place an order in the market without it being executed immediately. What is the difference between a stop, and a stop limit order?

#using_stop_orders_to_enter_trades #buy_stop_vs_sell_stop

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[fibonacci]

Great video. I have accidentally used a limit order to buy a stock in the future and I got filled immediately haha. Lesson learned

[julieth]

OMG, bless you! I have been searching for the answer on how to set in advance a buy order above the current price and how to set in advance a short sell order below the current price, and thought that using Buy/Sell Stop would work but wasn't sure. Took forever to find someone who answered this question. Thanks so much!!

[creolecajun]

I like using a stop about five cents above that way if price doesnt hit my stop entry within one five minute candle then im confident it wasnt the rite trade and i cancel the order.On the other hand if it hits my entry stop it gives me confidence the stock is moving in the direction i was calculating for.

[larrygray]

Always great videos, Mark! I use these orders a lot. Usually, a BS just above a clear level of resistance, or a SS just below a level of support. They also work well when news is expected. e.g., data releases. I like a BS just above the current price if expecting good news -- the data is released, the market reacts positively, the market picks me up on its way higher.

[cirtey]

By far my favorite trader on youtube, most of the rest are more marketers than real traders.

[kadalora]

Awesome, thank you for this! I'm new to trading and had considered that there would be times I'd want to execute a trade like this. I assumed this must be what buy stops/sell stops are for but the name is quite confusing, it should really be buy starts/sell starts don't you think? As you're specifying when to start it not stop it!

[sirloin]

Just beware that if there are a lot of Stop Orders at the previous High, the market will 'gap up' before filling your Order. Marketmakers (or the players on the opposite side of your trade) will see all that pent-up Demand, so will trigger your Stop maybe +5 pips higher. Definitely at a much higher price than you wanted. They'll then supply all that Demand back down to the original level, as Resistance now becomes future Support. 😃

[bradfl]

Thanks so much for making this video. As always, your videos are very clearly presented. I have been struggling today to figure out the difference between limit orders and stop orders, and your explanation was the one that finally explained the difference to me in a way that I could understand. I appreciate it.

[toysvoice]

Exactly what I was looking for. Thank you!

[murkawicz]

5:40 how are you adding to your position if you're selling? sorry but i'm so confused on this one

[petersmith]

Very clear explanation, thanks Mark 👍

[BartEdson]

This is a good explanation of the concept. I get it. What I can't seem to figure out is how to actually fill out a "Buy Stop" order form on TD Ameritrade or Coinbase Pro. Seems to be zero info out on the net on the actual mechanics of placing a buy stop order. Idea for a future video?

[tasha]

I'm such a noob. I didn't know what a buy stop was, so I put it as a limit instead + with a stop loss. It filled immediately and then sold immediately because of the stop ñod price. Felt quite silly

[Dr.Sam.]

Hi dear

How about if I place a stop buy order if market moves up but market opens higher the next day?

Regards

Sam

[Gyurix]

Buying right at the resistance without seeing other confirmation signs such as the momentum of the move is a guaranteed way to lose money. But yeah, for pyramiding it makes sense.


The only thing I miss about these orders, that there is no elapsed time parameter for these stop orders. For example if I want a stop to trigger only if the price stays above a certain price for like 5 minutes? I guess the only way to do such thing is to do it manually or code a trading bot / helper tool which does that for you, right?

[tooeazeful]

Good video. I'm going to use a sell stop when I short fake break outs

[TheDesertsweeper]

Ok let us say the price is at 100 and I think it is going to go down to 90, and then bounce up to above 100 again. I want to catch the buy at say 91. However I have also decided that should the price then continue down and reach 80 - there is little support below that so I believe it would go into free-fall and I want to protect my Buy-Limit with a Stop Loss at say 80. I want this automated...I want the exchange to place my buy-limit at 90 but stop it out at 80 without my intervention (I am on holiday for example). The problem is the exchange will not let you place the SL until the order is filled.

[eddyvideostar]

Dear UK: Wonderful video: This is an interesting and convenient strategy. One can be free, not glued to a screen all day, causing epileptic fits of flashing lights of level two fakeries and frustration, build a mutual fund type system of many orders intraday, walk away, come back -- then see the green fruits of this efficient system -- with emotions elsewhere.

Regarding the hype of seeing volume at certain times: When an intraday event or momentum enters a stock and a large volume candle is signifying a price rise, by the *time the trader is farting around* for a better limit price or waiting for a retest of a certain area -- the stock has already shot upward leaving the trader in the dust. The automation will save the trader consternation and confusion.

[duha]

What about buy stop or sell stop delay