On-Stop Entry Order to Increase Trading Profits

On-Stop Entry Order to Increase Trading Profits

Submitted by adil on Wed, 06/25/2014 - 18:30

On-Stop is One of the Best Entry Orders

When you are trading in the market, you never have enough time to observe every move and wait for the market to hit the predefined entry level. However, you no longer have to wait for the market to initiate a trade entry if you use on-stop entry order, because it allows you to enter into new market trends at a very early stage. Following are some of the benefits of on-stop entry order and how it can help you brush up your trading skills:

It confirms the Momentum

When you use on-stop trading orders, you will observe that the market progresses with the order on momentum. This momentum provides a confirmation that it moves in the same course of direction that you wish to trade. Therefore, when a price move in line with the way you trade at the time of entry, you usually end up making profits very quickly. This is the reason why “on-stop” entry order is better than other entry orders, such as, limit or market entry, because they do not offer you this benefit.

Suppose, if you make a ‘buy stop’ entry, the market will have to move in an upward direction and show a bullish momentum in order to fill your entry. On the other hand, if you go for a ‘sell stop’ entry, there should be a bearish momentum in the market to be at a level of your sell order. Although, you cannot make sure if the trade will persistently be in your favor, yet, the market does move in your favor when you enter into a trade.

No More Long Hours in front of your Computer Screen

When you enter in stop entry order, it becomes possible for you to place a trade and then forget about it. It allows you not to waste your time sitting in front of a computer screen.  Even if you are unable to fill your trade while you are away, you are sure about one thing that the order will get filled with momentum confirmation.

Most of the traders do not have time to wait and watch the market to reach the expected entry level. For these traders, stop entry order allows them to enter a stop target and stop loss so that they do have to spend the whole day in front of their computer screen.

It Helps You Get Rid of Trading Obsession

Sometimes, traders get obsessed with the trading and tend to spend most of their time in front of a computer screen. Spending too much time on a computer screen is not healthy for these traders because sometimes it makes them take premature decisions, which only end up in losses. But with on-stop entry orders, you can enter a sell stop or a buy stop slightly above the low or high of the inside bar. It allows you to get rid of your trading obsession and focus on making reasonable trading decisions.

It Maintains Discipline

With stop entry order, you simply enter a stop order and then let the market play out the trade. This enables you to maintain discipline and allow the market to come to you. You set a certain level and then enter your stop order. You are in a favorable position if the market moves ahead of the level, but it doesn’t turn out to be in your favor if the market does not move past a certain level. Stop order entry also enables you to avoid the mistake of entering into a trade too early and hence, keeps you from psychological mess of over analyzing your trade or closing a trade before time.

Therefore, if you learn to use the on-stop entry order, you can maintain a discipline that is required in order to make a successful trade.