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Re: sharpshorts post# 1008

Wednesday, 02/12/2020 11:06:23 AM

Wednesday, February 12, 2020 11:06:23 AM

Post# of 1589
Reasoning behind using bracket orders...to-save-your bacon...
They are especially useful for scalping in fast markets.

Bracket orders automatically place off-setting exit orders:
When used with BUY orders, a SELL-STOP will be auto-placed at market below your entry price
and a SELL-TARGET will be auto-placed at a limit above your entry.
When either is filled, the other is cancelled.
Either or both can be cancelled or changed once placed.

Note that the STOP might get filled a tick or two lower
but the LIMIT will never get filled at a lower price.
Either might get filled at a higher price...

In slower markets you may have time to adjust the order's parameters before either side gets filled.
Raise the STOP when you can - NEVER LOWER IT.
The TARGET level can be raised or lowered once you have established a long position
(dependent on your current evaluation of price action)

You can also Sell-at-Mkt-&-Cxl before either bracket kicks in.
Always bear in mind that there will always be another trade opportunity.

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