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Track 'n Trade Stocks High Finance
Adding Stop Entry Orders
Video Transcript
In this video, we want to demonstrate how to place a Stop Entry Order. In other words, how to enter the market using a Stop Order. A Stop Order, simply put is an order that specifies a trigger price. Once the market touches that price, the Stop Order immediately becomes a Market Order, and is filled at the current market price.
We use a Buy Stop Order to enter the market or a Sell Stop Order to exit the market; let’s example both.
First, let’s enter the market using a Buy Stop Order.
Click on the BS button in the upper right corner, drag and drop it on the screen, above the current price, specify in the order ticket the number of shares we want to purchase, I’ll put 100 shares, and then click Place order.
Now, once the market price advances to the price level of our open order, our Stop order will be filled.
Now, let’s example exiting a market using a stop order.
We place a sell stop behind the market, if we’re already long the market, this order will take us out of the market if the market falls, and our price level is hit.
Click the BS button, drag and drop our order behind the market, notice that Track ‘n Trade defaults the order type to sell stop for us automatically. Drop the order in place, confirm the quantity in the order ticket window, click the Place order button, and as the market moves forward in time, when it returns in price, and hits our stop order, we’ll exit the market.