In day trading, other than the pursuit of making money, the one thing that confounds traders the most is order placement. Placing orders is a requirement for day trading. A person places a buy or sell order with the hopes of making money. Sounds easy, right? Well, there are different types of orders and each one behaves differently. You should know what’s available to you. For example, some order types may work best for some situations and not others. In this video, we’ll teach you about the differences and use.
What are the different order types? Discussed in the video, you have market orders, limit orders, MIT orders, stop orders, and stop limit (also called stop with limit) orders. Depending on your trading platform, you may have all or some of those order types available to use with buying or selling.
Sometimes, you may want to get into a position (aka get into a trade) at a given moment. A market order will do this. It’s probably the easiest to understand. Essentially, you get into a trade wherever the price is soon (almost instantly) after clicking the Market button in either the Buy or Sell column of the NinjaTrader SuperDOM (pictured in the video on the right side of the screen).
In other cases, you may want to get into a trade when price reaches a certain value or one more favorable. This can be accomplished with a limit or MIT order as explained at 3:40 in the video. Please take a moment to watch the full 15 minutes, as it could save you time and potentially money (in case you could be using more appropriate order types for your style of trading).