Conditional Trade Orders

Are you sure you want to deal with the emotions associated with the risk of losing your money? Do you have the right mindset to make sure trading is enjoyable?

A great tool to help manage emotions is the use of "conditional orders". A conditional order is an order that uses predetermined criteria to trigger an action.

Here's an example of a "conditional order" that executed today:

If the bid of $STLD is greater or equal to $30.49, sell $STLD at limit $30.50. This "conditional order" was created on Monday, September 14 and it triggered on Tuesday, September 15.

There are a couple of things I like about this strategy:

  1. You don't have to openly "advertise" your plans to the public. You may already be wondering why not just place a sell order for $STLD at limit of $30.50? I prefer not to "show my hand" until I am ready to play my hand and I also like the power of putting some thought into the if/then conditions. Conditional orders are not visible to the public.
  2. You should have already developed your exit strategy in advance of, in this example, buying $STLD. If you start each sail with the return in mind then you should have created your conditional sell order immediately after buying $STLD. Once you set it, you can forget about it.
  3. You can always cancel or adjust your conditional order before it executes based on the seas, tides and other factors.
  4. There's no need to sit and stare at stock quotes so set your conditionals and get on with life!

Fair winds and following seas!

Trading Tide Levels (at the time of the post):
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This is for informational purposes only and the information provided does not encompass all possible or probable outcomes. Nothing posted here is an indication of future results or is a guarantee or promise of future investment returns. Investing in stocks or bonds carries risks including losing your entire investment. Nothing is recommended, advocated or endorsed including any third-party links, resources or advertisements of any kind. Any investment decisions are recommended to be in conjunction with a Certified Financial Planner with a comprehensive and personal financial plan and all other components that make up your own financial situation.

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