Conditional Trade Orders
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:
There are a couple of things I like about this strategy:
- 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.
- 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.
- You can always cancel or adjust your conditional order before it executes based on the seas, tides and other factors.
- 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!
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