Limit Orders Explained: A Guide for Traders
Intro
In the intricate landscape of stock trading, understanding the tools at your disposal can make all the difference between a smart investment move and a costly mistake. One such tool is the limit order. This article will unfold the concept of limit orders, showcasing the nuances that separate them from market orders. With the world of trading rife with jargon and misconceptions, our aim is to break down the subject matter into digestible segments.
Limit orders enable traders to specify the exact price at which they wish to buy or sell a stock. Unlike market orders, which execute immediately at the best available price, limit orders can sit in the queue until the market reaches the desired price. This characteristic gives traders a level of control over their trades that is not possible with market orders.
This guide serves not just as a primer; it’s a comprehensive journey through the mechanics of limit orders. We’ll discuss their strategic advantages, possible shortcomings, and how market conditions can significantly influence their effectiveness. Through this exploration, the article will also tackle common misconceptions and provide insights into best practices for executing limit orders.
Understanding these concepts isn’t just for seasoned professionals; investors at any level can benefit from mastering limit orders. As we delve deeper into this topic, expect to gain a clear depiction of how and when to deploy limit orders effectively in various trading strategies.
Intro to Limit Orders
Understanding limit orders is essential for anyone dipping their toes into the vast sea of stock trading. Unlike market orders, which execute nearly instantly at the current price, limit orders give traders the power to specify the price at which they are willing to buy or sell a stock. This control can be the difference between making or losing money, especially in a volatile market.
Defining Limit Orders
A limit order is fundamentally a request to buy or sell a stock at a specific price or better. For instance, if you wish to purchase shares of a company, you might set a limit order to buy at $50. If the stock's price dips to $50, your trade will trigger, allowing you to buy at your desired price rather than the market's current rate, which could be higher. Conversely, for selling, if you set a limit of $75 for shares you hold, the trade will only execute if the stock reaches that value or higher. This functionality can help traders avoid unfavorable trades that could happen in a fast-moving market.
The Stock Market’s Mechanisms
The stock market operates on a complex network of buyers, sellers, and brokers all interacting through various order types. Limit orders play a key role in this mechanism, functioning as a safety net for traders who prefer to set their terms rather than jumping in headfirst at the market price.
The trading floor can resemble a busy marketplace, where each order acts like a bargaining chip. Think of a limit order as a person standing firm on a price when negotiating. Other buyers and sellers might have different ideas, but the limit order can help maintain discipline in trading strategy. This focus creates a structured approach to entering and exiting positions, impacting market liquidity and price discovery.
In summary, grasping the concept of limit orders isn't just about placing an order; it's about mastering a tool that can maneuver through the unpredictable currents of the stock market. By understanding this, traders can make more informed decisions and potentially capitalize on market fluctuations to their advantage.
Types of Orders in Trading
Understanding various types of orders is crucial for anyone looking to navigate the complexities of the stock market effectively. Within trading, orders represent the communication between traders and the market, dictating how and when transactions will occur. Each order type serves distinct purposes, and investors must grasp these differences to maximize their trading strategies.
In this section, we'll delve into the nuances of market orders and limit orders, followed by an exploration of other order types that enhance trading effectiveness. This knowledge enables traders to make informed decisions and tailor their approaches to their specific financial goals and market situations.
Market Orders vs. Limit Orders
Market orders are perhaps the simplest form of trading commands. When an investor places a market order, they are instructing their broker to buy or sell a security immediately at the best available price. This immediacy is beneficial in fast-moving markets, ensuring that the trade is executed without delay. However, while market orders assure execution, they do not guarantee the price at which the trade will settle. This unpredictability can lead to unfavorable outcomes, especially in volatile market conditions where prices can fluctuate dramatically in a short span.
Conversely, limit orders allow traders to specify the maximum price they are willing to pay when buying a stock or the minimum price they will accept when selling. This creates a mechanism for more controlled trading. For instance, if an investor wants to purchase a stock priced at $50, but only values it at $45, they can set a limit order at this price. Their order will only be executed if the stock's price reaches or falls below $45. This provides traders an amount of price control absent in market orders, making limit orders an invaluable tool for strategic trading. However, the downside can be the possibility of the order not being executed if the market does not reach the set price.
Other Order Types Explained
Apart from market and limit orders, there are several other order types that help tailor trading strategies to meet specific investment goals. Here are a few noteworthy examples:
Stop Orders
Stop orders work by automatically triggering a market order once the price of a stock hits a predetermined stop price. This order type is commonly used to limit potential losses or protect profits on existing positions. The key characteristic of stop orders is their function as a safety net; they activate only when certain conditions are met. Many traders find them beneficial as they allow for hands-off management of risk, ensuring that potential losses do not spiral out of control. On the downside, stop orders can be executed at less favorable prices during volatile conditions, which raises the question of market impact.
Stop-Limit Orders
A stop-limit order combines the features of both stop orders and limit orders. When the stock price hits the specified stop price, it converts into a limit order, allowing the trader to establish a maximum price for executing the order. This hybrid approach draws traders looking for better control over execution prices. The essential benefit of stop-limit orders is that they prevent the unexpected market price swings that could lead to execution at a disadvantageous price. However, if the stock price moves quickly, it’s possible that the limit order may not be filled at all, potentially leading to missed trading opportunities.
Trailing Stop Orders
Trailing stop orders are particularly intriguing as they allow traders to protect profits while still allowing for potential profit maximization. A trailing stop order works by setting a stop price at a fixed amount or percentage below the market price. If the market price moves favorably, the stop price adjusts accordingly. Thus, if a stock's price goes up, the trailing stop price follows it, maintaining the minimum profit margin while adapting to market changes. This flexibility embodies a balance between risk management and profit maximization. However, like all orders, they may not execute if the market price dips unexpectedly, which could leave traders vulnerable.
In summary, familiarizing oneself with these order types cultivates an investor's understanding of market dynamics and enhances their ability to make decisions that align with their trading strategies. With comprehensive knowledge, traders can navigate the trading seas with greater confidence.
How Limit Orders Work
Limit orders play a crucial role in the realm of stock trading by allowing investors to set specific prices at which they wish to buy or sell a stock. This provides a more controlled approach compared to market orders, where prices can fluctuate unpredictably. Understanding how limit orders work is essential not just for seasoned traders, but also for those new to the market who wish to safeguard their investments and improve their trading strategies.
Placing a Limit Order
To place a limit order, an investor must first determine the price at which they are comfortable buying or selling a stock. This price should reflect the individual's research, analysis, and personal investment goals. For instance, if an investor wants to buy shares of Apple, they might set a limit order at $150, meaning they won't purchase until the price drops to this level or lower.
When entering the order into a trading platform, most brokers will require details such as the stock symbol, quantity of shares, and the limit price.
It's also important to note that limit orders can be specified as either good-till-cancelled (GTC) or day orders. GTC orders remain active until they are either executed or cancelled by the investor, while day orders expire at the end of the trading day if not executed. By being clear on these nuances, traders can manage their orders more effectively, instead of letting them linger indefinitely or expire unexpectedly.
Execution Process
Once a limit order is placed, the path to execution begins, but this does not guarantee a swift or certain completion of the transaction. The execution of limit orders relies on market conditions and the availability of the specified price range.
It's crucial to remember that the market operates in real-time, so a limit order may remain unfilled if the stock does not reach the desired price before the close of trading.
For instance, if a trader sets a limit sell order for Tesla at $700, but the highest price reached during the trading day is $695, the order doesn’t execute. This emphasizes the unpredictability that can accompany limit orders, despite their built-in price control.
Additionally, many platforms provide notifications when limit orders are executed, helping traders stay informed. This real-time feedback allows for more coordinated responses to market movements and can inform future trading decisions.
Advantages of Using Limit Orders
In the bustling world of stock trading, limit orders hold a particularly advantageous position. Investors and traders alike find themselves drawn to this tool due to its unique capabilities that offer more than just a mere playing card in the poker game of financial markets. This section will explore the specific benefits of employing limit orders, particularly in terms of price control and managing market volatility, fostering a deeper understanding of why savvy investors prioritize them in their strategies.
Price Control
One of the standout features of limit orders is their ability to grant traders a significant degree of price control. When placing a limit order, investors set the maximum price they are willing to pay for a stock (for buy orders) or the minimum price they are ready to accept (for sell orders). This means that instead of gambling on market fluctuations, they can assert their price preferences and wait for the market to align.
Consider a scenario where stocks of a tech company are trading at $150, but an investor believes that $140 would be a fairer price. By placing a limit order at $140, the investor isn’t just throwing a dart in the dark; they’re making a calculated decision about the price they are willing to engage. If the stock dips to that level, the order triggers, offering them the opportunity to snag the shares at a perceived bargain—all while maintaining discipline and control over their investment parameters.
"Limit orders allow traders to effectively exercise market timing while minimizing emotional responses to fluctuating prices."
In this sense, limit orders operate as a buffer against the impulsivity that can snare unwary traders, cultivating a more strategic approach to stock purchases or sales.
Reduced Impact of Market Swings
Market swings can feel like a rollercoaster ride—thrilling for some, but downright terrifying for others. In these often unpredictable conditions, limit orders shine brightly by reducing the overall impact of sudden price jumps on an investor’s portfolio. When using limit orders, traders can avoid the pitfalls of executing trades at prices that may be unfavourable due to erratic market activities.
Imagine the stock market experiencing a volatile session where prices soar or plummet within minutes. An investor who uses a market order may inadvertently sell their shares at a significantly lower price than intended, simply because they succumbed to market frenzy. On the other hand, a limit order sets predetermined conditions that shields traders from these abrupt shifts, ensuring that trades are executed only when the terms are met.
Furthermore, limit orders can accommodate longer-term strategies. Investors can use them to target specific price levels that align with their personal investment strategies rather than reacting to transient market sentiment. This asynchronous approach not only promotes stability but also encourages a level of patience that can yield long-term rewards in the ever-evolving stock market landscape.
In essence, the advantages of using limit orders are manifold. With robust price control and a solid defense against market swings, traders can navigate the financial landscape with more confidence and a refined strategic edge.
Disadvantages of Limit Orders
While limit orders offer strategic benefits and control over trade executions, they are not without their downsides. Understanding these disadvantages is crucial for anyone engaged in stock trading. Delving into the limitations of limit orders can equip investors with the knowledge they need to navigate the financial landscape more effectively. By considering the risks and potential missed opportunities that come with limit orders, traders can make better decisions and refine their strategies.
Risk of Order Non-Execution
One of the primary disadvantages of limit orders is the risk that they won't execute at all. When placing a limit order, you set a specific price at which you want to buy or sell a stock. If the market price never reaches that limit, your order remains unfilled. This poses a significant risk, especially in fast-moving markets.
Imagine you set a limit order to buy shares of Tesla at $600 when the stock is currently priced at $620. If the stock price doesn't dip below your limit, you may miss out on the opportunity to own those shares altogether. This situation can be especially frustrating during volatile market swings where conditions change rapidly.
- Market Gaps: There could be situations where the market opens at a price significantly higher than your limit due to overnight news or events, and your order will not execute.
- Time-sensitive trades: If a stock targets a certain trend and you fail to react quickly enough with a proper market order after your limit fails, you may find yourself on the sidelines.
In the fast-paced world of trading, opportunities can evaporate in an instant. Failing to execute due to setting a limit order can feel like being at a train station way too late to catch the ride.
Potential for Missed Opportunities
Another disadvantage involves the potential for missed opportunities. If a trader focuses too heavily on limit orders, they might inadvertently overlook high-quality trades that occur outside their desired price range. In essence, one must stay flexible and maintain a broader view instead of fixating only on specific prices.
For instance, if you want to buy Apple stock with a limit order at $150, but the stock experiences a rally and quickly rises to $160, you may very well miss your chance. Even if your analysis accurately predicted a bullish trend, a steadfast adherence to a limit might prevent you from capitalizing on potential gains.
- Market Momentum: There could be instances where stocks surge dramatically, and by holding out for your limit price, you could miss out on substantial upward movement.
- Attractive Alternatives: If a trader is rigid with their limit order and does not consider other stocks that may present lucrative opportunities, they may find themselves at a disadvantage against those trading on the fly.
Keeping a keen eye on the market and being adaptable with your trading strategy is essential.
"A trader's ability to adapt can be the difference between seizing opportunities and watching them slip away."
Both non-execution risks and missed opportunities illustrate that while strategy is critical, so is flexibility in a trader's approach. Understanding these disadvantages is key to developing a comprehensive strategy that maximizes potential in an ever-evolving stock market.
Market Conditions Affecting Limit Orders
Understanding the market conditions that affect limit orders is crucial for any trader looking to optimize their strategy. A trader can make decisions that align with market realities only after grasping these conditions. How well you interpret the market can mean the difference between sticking to your limits and watching your trade slip through your fingers.
Volatile Markets
In volatile markets, prices can swing dramatically within short time spans. This rapid shift puts limit orders in a precarious position. When volatility spikes, a trader's limit order might become irrelevant if it doesn't adjust to keep pace with market movements. For instance, consider a stock that’s traditionally stable but suddenly makes headlines due to unexpected news. Prices may spike or plummet before your limit order is executed, presenting a classic example of how volatility can jeopardize the planned execution of trades.
The benefits of a limit order in such an environment hinge on the transparency it offers. By setting a price at which you want to buy or sell, you’re exercising control over transaction costs, which is a vital asset when fluctuations are chaotic. However, it also introduces risk. If you place a limit order to buy a stock that suddenly increases in price due to a market frenzy, your order might never get filled, leaving you trailing behind others who seized the opportunity.
"Limiting your exposure in a volatile setting can often mean securing your funds rather than chasing profit like a dog chasing its tail."
Trends in Stock Prices
Trends in stock prices operate under the premise that history often repeats itself; patterns can indicate future movements. Recognizing upward or downward trends allows traders to set strategic limit orders that are more aligned with market forecasts. If a stock continues to climb steadily, placing a limit sell order at a price above recent highs can yield positive results once that trend is validated.
Equally important, understanding how these trends function can help mitigate risks. For example, if a stock is on a downward trend and you choose to place a limit buy order, the chances of your order being executed at a higher price dwindle. However, if you time it expertly by waiting for a potential reversal in the trend, you might capitalize on a deeply discounted price point.
Take note of the following when analyzing trends:
- Identify key support and resistance levels.
- Look for patterns such as head and shoulders, cups, or flags.
- Incorporate moving averages to smooth out price fluctuations.
Using limit orders in the context of established trends affords not only control over trade execution but also allows for the potential to optimize returns in alignment with market movements. A proactive, data-driven approach helps ensure that your limit orders don’t just sit idle in a fluctuating landscape.
Strategies for Effective Limit Order Usage
When dealing with limit orders, utilizing effective strategies can significantly enhance trading outcomes. It’s not simply about placing an order at a desired price; it's about making calculated decisions based on market dynamics, trader psychology, and timing. With the right approach, investors can better position themselves to capitalize on market fluctuations while minimizing risks.
Setting Appropriate Limit Prices
The first step in using limit orders effectively is to determine the right limit price. Setting a price that's too high or too low might keep an investor from executing a trade entirely. Therefore, it’s crucial to analyze the stock's price history, current market conditions, and potential catalysts that may affect future valuations.
- Evaluation of Historical Data: Look at how the stock moved in the past to gauge realistic price points. Using tools like charts can be invaluable.
- Consider Market Sentiment: Investor trends and news can dramatically swing prices. Keep an ear to the ground.
- Utilize Range-bound Strategies: If a stock tends to fluctuate within a specific range, setting limits just outside of the usual price movements can increase the chances of execution.
Understanding support and resistance levels gives traders an edge. A stock bouncing off resistance levels might suggest setting a limit just above it, while placing a limit around support levels can help ensure buy orders are executed if prices fall.
When to Use Limit Orders
Knowing when to deploy limit orders can be just as important as the pricing strategy. Timing often shapes the effectiveness of a limit order. Here are a few situations when limit orders shine:
- Earnings Reports or Major Company Announcements: Prior to these events, limit orders can help lock in prices before potential volatility kicks in post-announcement.
- Market Open or Close: Liquidity tends to be higher at these times, but the spread between bid and ask prices can be wide. Placing a limit order can help dial in a more favorable price amidst the frenzy.
- During Market Corrections or Sudden Dips: If a stock you’re watching drops rapidly, placing a limit order can help you buy in lower without having to chase prices. It’s like waiting for that special sale, knowing the price will eventually come back around if you're patient.
- To Avoid Emotional Decisions: This may sound cliché, but it rings true; using limit orders can reduce panic-driven decisions or impulsive reactions during market sways—keeping you on the right path.
Key Point: Timing and price setting in limit orders isn’t just strategic; it’s about turning insights into actionable decisions.
Common Misconceptions about Limit Orders
In the world of stock trading, limit orders serve as a fundamental tool for investors and traders alike. However, despite their advantages, several misconceptions persist that can lead to confusion and potentially costly mistakes. Understanding these misconceptions is crucial for anyone looking to utilize limit orders effectively. They not only surround the function of limit orders but also about their integration within the broader scope of trading strategies. Recognizing these misunderstandings can empower traders to make more informed decisions, aligning their strategies with actual market mechanics.
Assumptions about Price Guarantees
One common misconception about limit orders is the belief that they provide a price guarantee. Many traders think that when they set a limit order, they are entitled to execute at that set price regardless of market fluctuations. However, this assumption is flawed. While limit orders will only execute at the specified price or better, there is no assurance that the order will be filled at all. For instance, if a trader places a limit buy order for shares of ABC Corp at $50, the order will execute only if someone is willing to sell at that price or lower. If the stock price surges past $50 without a corresponding seller, the order simply won’t go through. Thus, it’s crucial to understand that price guarantees exist only within the context of execution, not assurance of execution.
"Limit orders restrict the execution price, but they do not guarantee execution." – An experienced trader's insight.
Beliefs about Speed and Efficiency
Another widespread belief among traders is that limit orders are inherently faster and more efficient than other types of orders. While it might seem that a limit order could streamline transactions by setting a specific target price, this perception can be misleading. In practice, the execution speed of limit orders can be sluggish compared to market orders, especially in fast-moving markets.
Traders might be under the impression that placing a limit order will result in an immediate transaction; yet, this is not the case. The execution depends on market conditions and the presence of opposing buyers or sellers. High volatility can result in choppy executions where the limit order may miss opportunities if prices fluctuate rapidly. Therefore, while limit orders provide control over price, they do not guarantee instantaneous execution, which is essential to remember, particularly during market peaks or troughs.
Best Practices for Executing Limit Orders
When entering the stock market, utilizing limit orders effectively can make all the difference in both strategy and outcome. Mastering these orders is not just about placing them; it's also about understanding how to use them wisely. This section explores best practices for executing limit orders, emphasizing factors that can lead to more successful trades and minimize potential pitfalls.
Understanding Market Dynamics
The stock market is like a bustling highway, with prices fluctuating based on a multitude of factors. To execute successful limit orders, one must grasp the ebb and flow of market dynamics. This includes keeping an eye on trading volume, market trends, and news that may impact stock prices.
- Trading volume is essential: Higher volumes can indicate greater interest and can validate the price levels at which limit orders are set. In contrast, a drop in volume might signal caution.
- Market trends matter. Bullish markets often see stock prices rising, while bearish markets might lead to declines. Knowing this can help you set more realistic limit prices.
- Staying tuned to news is crucial: Earnings announcements, economic reports, and geopolitical events can all send market waves. Being informed allows you to adjust your orders proactively rather than reactively. For instance, if a company is about to announce quarterly earnings, you might consider adjusting your limit order based on projected outcomes.
Understanding these dynamics enables traders to position their limit orders in a way that aligns with market behavior, enhancing the likelihood of execution.
Adjusting Orders with Market Changes
Markets are anything but static; they shift, often without a moment's notice. To remain effective in executing limit orders, flexibility is key. Here are several considerations for adjusting your orders in response to market changes:
- React promptly to price movements: If a stock is rapidly ascending or descending, you may need to modify your limit price. For instance, if you placed a limit order at $50 but the stock is now trading at $55, assess whether raising your limit price makes sense.
- Set alerts for price changes: Most trading platforms allow you to set alerts. This capability can notify you when your target price is achieved or when the market behaves in a way that necessitates reassessment of your order. This can help avoid situations where you miss out on market movement.
- Re-evaluate your strategy: Sometimes, a planned purchase might not align anymore with your overall investment strategy due to market fluctuations. Regularly revisiting your trading goals can prevent unnecessary losses.
- Utilize trailing limit orders: These can be your best friend in volatile markets. A trailing limit order adjusts your execution limit as the stock price moves in your favor. This way, you’re locking in profits while still allowing for upward movement.
"Success in trading is not about predicting the market; it’s about adapting to it."
Adjusting your limit orders in light of changing market conditions not only increases the chances of an order being executed but also ensures your trading decisions remain aligned with current market realities.
By understanding the market's pulse and maintaining adaptability, investors can navigate the complex waters of stock trading more effectively, turning limit orders into powerful components of their trading arsenal.
Potential Pitfalls of Limit Orders
Limit orders can be a useful tool for investors, but there are some potholes on the road that traders need to watch out for. This section digs deep into the potential pitfalls associated with limit orders to help traders avoid common mistakes and ensure smoother sailing in their trading journey.
Underestimating Market Movements
One of the biggest missteps traders often make is underestimating market movements. In a fast-paced stock market, prices can swing more wildly than a pendulum—sometimes for reasons that aren’t immediately clear. For instance, if an investor sets a limit order with a price that looks attractive on paper, they might find that the market moves beyond their limit within moments.
The reality of the stock market is that demand and supply can shift overnight. For example, during earnings season, a stock may shoot up or plummet based on results that surpass or miss expectations. This can render your limit order moot if the stock price soars beyond your accepted limit or suddenly dips below it.
It’s crucial not to place blind faith in a specific price point. Instead, one should be aware of potential market catalysts like geopolitical events, economic reports, or major company announcements. Staying attuned to market trends and news can help to better anticipate or react to sudden price movements, and adjust limit orders accordingly.
Overlooking Timing Considerations
Timing is everything in the stock market, especially when placing limit orders. Overlooking the timing of an order can lead to heartache, as second-guessing or delaying an order can result in lost opportunities.
For instance, imagine a trader wants to buy shares of Apple at a limit price of $145. If they wait too long, perhaps deliberating whether that’s the right move, the share price might shoot up to $150. By the time they decide to act, they have entirely missed their chance at a lower price.
Moreover, traders should be conscious of market hours. Orders placed after market close might not execute until the next trading day, during which significant overnight price shifts may occur. Understanding market dynamics and timing—like using pre-market or after-hours trading—can help mitigate this risk.
"A delayed order is often a missed chance. The market won't wait for you to make up your mind."
In summary, limit orders can be a double-edged sword in the stock market. While they offer control over trade execution, being mindful of market movements and timing when placing them is essential. Failing to consider these factors can lead to missed opportunities or frustration when orders are not executed as expected. With the right precautions, traders can navigate these pitfalls and harness the full potential of limit orders.
End
Navigating the world of stocks can be a wild ride, and understanding limit orders is a critical part of that journey. This section ties together the essential elements we’ve explored, reflecting on the nuances of employing limit orders effectively. The beauty of limit orders lies in their ability to provide traders with more control over the price at which shares are bought or sold. By demanding that transactions occur only at or better than the specified price, traders can strategize more effectively, minimize losses, and optimize profits.
Summarizing Key Points
We've unraveled several key aspects:
- Definition of Limit Orders: Limit orders allow traders to set a maximum purchase price or a minimum sale price, ensuring they don’t pay more or receive less than their target.
- Advantages: The foremost benefits are price control and mitigation of market volatility impacts, which can help maintain a more predictable trading experience.
- Disadvantages: There's also the risk of non-execution and potential missed opportunities, which can be a peanut butter and jelly element in trading; while it spreads some safety, it can also leave a stale taste if one miscalculates.
- Market Conditions: We've discussed how volatile markets can tangibly affect limit orders and how trends can create opportunities or pitfalls.
- Effective Strategies: Best practices for setting limit prices and adjusting orders according to market dynamics ensure that traders remain agile and responsive.
- Common Misconceptions: It's essential to clear up misunderstandings regarding the infallibility of limit orders regarding execution speed and price guarantees.
Ultimately, understanding these fundamental concepts and strategies helps traders navigate the complexities of stock transactions with greater confidence.
Final Thoughts on Limit Orders
In the fast-paced world of trading, comprehension is power. Limit orders are more than just a way to buy or sell stocks; they embody a tactical approach that can lead to significant financial outcomes. The ability to control entry and exit points equips traders, whether they are seasoned investors or merely dipping their toes into trading waters.
As you continue your investing journey, keep in mind that knowledge of limit orders is crucial. While they provide a layer of control, awareness of their potential pitfalls is equally important. Engaging with the stock market intellectually and strategically will enhance one's trading effectiveness.
"The market is a complex entity, but limit orders offer a bridge between intention and execution, guiding traders through its twists and turns."
Ultimately, incorporating limit orders into your trading strategy could very well be the difference between a successful trade and a regrettable one.
