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Missed market analysis? Regret not knowing about the magical tool called stop limit order?

The full text is 1200 words, with a reading time of around 5 minutes.

Suitable for mooers like working professionals who don't have time to monitor stock prices.

"Learn to use tools - help you earn more" series Episode 2 - [Convenient Trading Tools] - [Stop Limit Order]

Ah, I just discovered recently that there is such a magical tool as a stop limit order! I can't help but recommend it! It's really useful!

If it is blind buying$TENCENT (00700.HK)$And holding for many years without much movement, this kind of long-term approach, this function is not of much use, so it can be disregarded.

My trading is relatively high frequency, holding stocks for only a few days or weeks, this kind of short-term trading. If you are similar to me, then you must listen to me recommending this magical tool.

First, let's talk about where this order is located?

Taking a commonly used order as an example: generally, by default, when you go to 'trade', it is a regular limit order (as shown on the right), setting the buying price and quantity.

(A little skill that many people haven't noticed: in the upper right corner, there is a toggle between the professional version and the simple version. If you just want to simply buy a stock and don't want it to be too complicated, then switch to the simple version. There's only a clear buy and sell button.)

Suppose I want to buy.$Tesla (TSLA.US)$, When the stock price is at 190, I bought 10 shares of Tesla (remember my buying price of 190, which will be useful for understanding later).

After buying this stock, I need to think about what to do next. Generally, there are two situations, it either goes up or goes down (obvious nonsense).

If the stock goes up, either hold it without selling, or sell when it reaches a mental price of 250 (this is where a stop profit order comes in, I will explain how to set it up later).

The fear is what if the stock goes down? I have work on hand and don't have time to watch the market all the time, I'm afraid I might miss my mental stop loss price if it suddenly drops by too much. Suppose my mental price is if it drops to 180, then I will sell, bought at 190, 1 share loses 10 dollars for stop loss.

Easy! The tool is here! Let's set a stop limit order on it!

First, find where the stop limit order is, see the arrow in the picture for guidance.

[Trade] - [Order Type] - [Stop Limit Order]

You can see many order types.

Let's focus on [Stop Limit Order], once you understand this tool, the others are the same, and you will understand them as well.

Let's start setting up the [Stop Limit Order] now!

The principle is very simple:

I bought at 190, for example, if I want to sell when the stock price drops to 180, then I will set a trigger price in advance.

The condition is when the stock price drops to the trigger price of 182 or 181 or 180 (the trigger price can be set arbitrarily but not lower than 180).

I placed an order for my 10 Tesla shares to be automatically sold by the app at a price of 180.

I have set the trigger price at 181, and I have selected the default option of same-day validity for this order.

If Tesla's stock price does not drop to 181 tonight, then this stock will not trigger a sell order and will still remain in my holdings.

If the stock price keeps falling, 195—190—185—181, ding, the stock price reaches 181, triggering the sell order I set.

I will sell the 10 shares in this order at the price of 180 that I set in the red box below, and the app will automatically help me sell.

Therefore, as long as I set this price, I don't need to watch the market constantly and can sleep peacefully.

No matter how much theory you read, trying it for yourself will make everything clear.

If you want to try, buying a lot in the Hong Kong stock market is too expensive. Try a cheaper U.S. stock at night, for example, a $10 stock, just buy 1 share, it's only $10, and you will learn the magic of a stop limit order in one go.

After learning the stop limit order above, let's take a look at a few others.

The limit order for taking profit and the stop limit order are opposite, let's study them.

For example, I bought tesla at 190, the stock price has been rising all the way

, 190-200-220-240-250, my mental sell price is at 250

Then I'll set a stop limit order (profit-taking) trigger if the price reaches 250, and in the order validity, I'll choose "cancel before order"

I set the trigger price at 250, and when$Tesla (TSLA.US)$It has been rising steadily. When the stock price reaches 250, I will have the app automatically sell 10 shares at the price of 251 that I set.

(If you want to cancel the order after placing it, just click on the bottom right corner box)

We have been talking about limit orders all along, but there are also several market orders in the order types. Don't worry, this is very easy to understand!

[Market orders] do not require setting a buying or selling price, you just need to specify how many shares you want to sell, and they will be sold at the current market price.

For example, if I bought at 190 and it rose to 250 triggering the sale, with the market price fluctuating slightly. In a very short time, the stock price jumped to 250.8, and the app helped me place an order to sell 10 shares at the current market price of 250.8.

As the saying goes: master the tool, try it yourself once, and you will understand everything, so easy.

Mastering the order types and practical exercises are essential, so go ahead and set a [stop limit order] now.

You can also go to the task center to claim tasks and earn rewards of up to over 5000 points!

Task 1: Complete the assets enhancement task, +5000 points.

Task 2: ...

More rewarding tasks,Please click here to go to the task center

Points? Not useful, right? no~no~no Points can be exchanged for many fun and useful things!

Do you like limited edition short sleeve Tees? Futubull merchandise? Premium quote cards? You can redeem them with points!

Want to learn more about redeemable items?Please click here to go to the rewards club

Next episode preview

Issue 3: Can you make money while lying down? 3 important futubull tools to improve capital utilization efficiency that you must know.

Catch up on past issues:

Issue 1:Have you ever used the trading alerts widget for stock price?

Let's be serious:

Have you discovered a great feature that many people don't know how to use? Feel free to recommend it to the editor in the comments section.

Which tool do you want to learn but don't know how to use? Feel free to comment, the next article may be an introduction to the feature you want to learn.

Disclaimer:

This article is for reference only and does not recommend any specific investment strategy or constitute investment advice. The content is general in nature, strictly for educational purposes, and should not be construed as investment advice or an invitation or solicitation to subscribe to, buy, sell, or redeem any investment products. Before making any investment decisions, you should consider your personal situation and relevant risks and consult a professional investment advisor if necessary.

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