Hesitation at the exit: what's behind yours?
Exits are where hesitation costs most: the stop approaching and the finger hovering, the target hit and the greed whispering "a bit more". Exit hesitation converts winners into scratches and scratches into losses.
What do you do?
- the exit you hesitate on most
- what the hesitation is protecting
- the rule that removes the decision from the moment
The order types guide shows how pending orders remove exit hesitation entirely.
Background: Market, limit and stop orders: which order type to use
The order types on a trading platform decide when and at what price you enter or exit. What each one does, and the mistakes that cost traders money.
What is the difference between a buy limit and a buy stop?
A buy limit is placed below the current price to buy on a dip. A buy stop is placed above the current price to buy if the price breaks higher.
Does a stop-loss guarantee the exit price?
No. A standard stop-loss becomes a market order when triggered and can fill beyond its level in a gap or fast market. Guaranteed stops, where offered, cost extra.
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