Apprentice Level
Adept Level
Expert Level
Master Level

3.5 Trade Entry Strategy

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Apprentice Level

As you develop your own trading style and strategy, you will notice that different setups require a different type of entry.
Many traders prefer to preset orders without knowing the full mechanics of this method. However, preset orders can remove emotional conflict and make it easier to stick to the original trading plan.
The downside to preset orders is around the assumption that the trader is not monitoring the price action when the position gets filled, and is not able to confirm that the market favours their plan.
Some exchanges also do not have a feature that allows a trader to set a stop loss alongside their preset order. So their position may get filled only for the market to move beyond their entry point and continue, leaving them in a position that is now in a heavy loss.