Trade Execution & Order Types

Scenario: Price is approaching your demand zone and you only want to buy if it reaches $48.50 or lower. Which order type should you use?

Buy Limit Order

Scenario: You must enter immediately because your trading plan requires instant execution. Which order type should you use?

Market Order

Scenario: You want to enter only if price breaks above resistance. Which order type is most appropriate?

Buy Stop Market Order

Scenario: You want to enter a short position only if price breaks below support. Which order type is most appropriate?

Sell Stop Market Order

Scenario: You refuse to pay more than your planned entry price. Which order type should you use?

Limit Order

Which order type guarantees execution but not price?

Market Order

Which order type guarantees price but not execution?

Limit Order

Scenario: Price gaps through your stop-loss overnight. Will a Stop Market Order guarantee your exact stop price?

No

Scenario: A Stop Limit Order is triggered, but price immediately moves beyond your limit price. What is the biggest risk?

The order may never execute

Scenario: Your trade plan includes an entry, stop-loss, and profit target before entering the trade. Which order setup best fits this plan?

Bracket Order

What are the three components of a Bracket Order?

Entry, Stop-Loss, and Profit Target

Scenario: One of your exit orders executes automatically and the remaining exit order is canceled. Which order feature is this?

OCO (One Cancels Other)

Scenario: Your entry order executes, and only then are your stop-loss and target orders placed automatically. Which order feature is this?

OSO (One Sends Other)

Scenario: You enter a long trade. Where should your protective stop generally be placed?

Below the distal line

Scenario: You enter a short trade. Where should your protective stop generally be placed?

Above the distal line

Scenario: Your trade reaches your planned profit target. What should you do according to your trading plan?

Exit the trade

Scenario: Price moves slightly against you after entry but has not reached your stop-loss. Should you move the stop farther away because you're nervous?

No

Scenario: Price almost reaches your entry, but your Limit Order never fills before the market rallies. Should you chase the trade?

No

Scenario: Your trade has not met all the conditions in your trading plan, but you "have a good feeling." Should you enter?

No

Scenario: You realize after entering that you never calculated your position size. What mistake did you make?

Entering without completing the trade plan

Scenario: Your stop-loss would require risking more than your maximum account risk. What should you do?

Reduce position size or skip the trade

What should always be completed before placing any order?

The full trade plan

Complete the sentence: Professionals execute ________, not emotions.

Plans

Complete the sentence: Good execution comes from preparation before the ________ is placed.

Order

What separates professional execution from amateur execution?

Professionals follow predefined rules for entries, exits, order types, and risk management instead of making emotional decisions.