In this instructional video, the speaker outlines the essential order types every trader should know. He first distinguishes the two primary categories—market orders, which prioritize speed and execute at the best available price, and limit orders, which let traders set a specific price but may not be filled. He then describes derived orders such as stop‑losses, warning against their use on highly volatile stocks due to frequent premature exits. The speaker explains order duration settings, focusing on Day orders and Good‑Till‑Cancelled (GTC) orders. Throughout, he shares his personal trading preferences—favoring limit orders for price precision while occasionally using market orders—and emphasizes that consistent practice and familiarity are key to mastering when to apply each order type.
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These are the different type of orders you must know before you get into trading and investing. Basically, there are two main types of orders: limit and market. There are other orders, but they are derived from those main order types. Each of these orders can be executed either as a buy or a sell, or as a short sell as well. Buy and sell orders will always be a limit or a market order. But what do they mean? Market order basically means buy or sell the market value, whatever it may be. When you use the market buy, you buy the best as possible. And when you use the market sell, you sell on the best bid possible. Market orders ensure fast execution as they prioritize speed rather than price. However, you need to take into consideration you will not be filled at current market price sometimes. Limit order— so basically it's like putting the sign, hey, I'm willing to buy the bottle of water for $1, and if someone comes and sells it to you, you got the water. But if no one passes and sells you the water, you didn't get the water. Limit orders provide control on on the price you are going to pay for your stocks, but there is no guarantee that you will actually get them, as if the market will not reach your specific price, you will just not get the shares. Now, beyond the basic limit and market orders, there are other orders that help us navigate the market. For example, stop-loss orders. I personally don't use stop-loss orders on stocks with high volatility, as it's really common to get shook outside of your positions on these types of stocks. Order durations. Basically, the main ones are day and GTC, which is good to cancel. I mostly use limit orders as they allow me to be more precise with my executions and the stock price. Yet sometimes I do use the market order as well. Remember, practice makes perfect, and the more you're going to do it, the better you're going to become at it and the better you're going to know when to use what. Take the time and familiarize yourself with these types of orders.
