Track 'n Trade Stocks High Finance
Adding Limit Orders
In this video, we want to demonstrate how to place a Limit Order within Track 'n Trade Stocks. We can use a Buy Limit Order to either enter the market on a market pullback, or the more popular use of a Limit Order, is to take profits when a market hits a specific price level. In this example, we're going to demonstrate how to take profits using a Sell Limit Order once the market hits a predetermined target price.
Of course, if we're trading with a Margin Account, we can use a Sell Limit Order to enter the market with a short position. But we'll cover these advanced trading techniques in other videos.
Let's quickly take a look at this chart. As you can see, we're long the market in McDonald's. As the market begins to rally, we might want to start considering taking profits. The best way to do that is with a Limit Order. A Limit Order is going to take profits off the table as the market comes up and touches a specified price. The best way to place a Limit Order within Track 'n Trade is to come up here to the right hand corner, and as you can see, we have a BS button. That stands for Buy and Sell. If we click that, we'll notice that it loads the cursor with an order. Once we drop that on the screen, by left clicking over the screen, you can see that our order moves up and down with the cursor. We can use this rubber band effect to line up our order with areas of historical support and resistance.
I'm going to come in here, and I'm going to drop my first Limit Order, or my target order, if the market hits this specified price, I want to take my profits. I'm going to put that right there, release the mouse button. You'll see it says, Buy 100. I'm going to come over here to my Order Placement dialogue box, and I'm going to change that. I'm going to Sell and I'm not going to Sell all 100 shares, I'm going to Sell 50 Shares. I'm going to put that on a Limit Order, okay. It's going to use the specified price of 92.54, which is where we dropped that price. I'm going to go ahead and hit Confirm on that.
You can see now that I have my order on the screen, I'm going to Sell 50 on a Limit Order, if the market touches that price. Let's come in and do another order style. Let's come in and grab this and let's just do it again. Let's place again, another, and I can do 50 or 25, however many I want. I'm going to say, if it comes up here and starts reaching up into these previous areas of historical price levels- I'm going to take some more profits off of the table.
So I'm going to come in here, and I'm going to Sell, and I'm going to put in there, my last 50. I'm going to do that on a Limit Order at the specified price of 95.12. I'm going to hit confirm. Now I have 2 orders on the screen. 2 Limit Orders, that are going to take profits off the table, as this market moves forward and touches these price levels. As we move the market forward, we can see that order was filled. We took 50 shares off of the table. Now, you can see it changed our initial order to 50. You can see down here in our Accounting Window, we have closed orders of 50, where we took our profits. We have Open Orders, of 50, where we still have 50 in there. We have Working Orders, where we're going to take 50 off here. We can come in and we can step the market forward once again.
We're going to Sell 50; we are completely out of the market at this point. We now have no Working Orders, we have no Open Orders, our Closed Orders, we've closed out both 50 and 50, so our 100 long- we liquidated at different positions and took our profits at different levels using Limit Orders within Track 'n Trade Stocks.