12: Implementing the Plan
How do I put the strategies described in the last two chapters into practice?
The answer is that, having logged onto my broker’s trading platform, monitored the charts, and planned my trade, I must enter the appropriate orders into the system.
Traders employ several different types of orders to implement various strategies, but I only use three of them:
- Market Order
Which executes immediately at the best price available. As long as the market is open, execution is guaranteed but the price is not.
- Which executes at a specific price (or better). A buy limit order specifies the highest price (below current market price) at which I am prepared to buy; a sell limit order specifies the minimum price ...