CMP or Limit Orders: When to Pull the Trigger?
Have you ever set a limit order, logged off feeling like a genius, and come back to find six positions open and the market laughing at you? Yeah… me too.
Let’s break it down:
• CMP (Current Market Price): You enter the trade instantly at the current price.
• Limit Orders: You set a specific price, and the trade opens only when the market reaches it.
Both have their place, but here’s why I personally prefer entering trades at CMP—especially for futures:
1. Control and Precision: When I enter at CMP, I know exactly what the market looks like right now. It lets me set my stop loss and manage my risk based on the current structure.
2. Avoid Overtrading: With limit orders, the risk is waking up to a nightmare. Imagine the market shifts, and all your carefully planned limit orders get triggered. Now you’re managing six trades, all in red, wondering if your analysis needs a refund.
These days, I save limit orders for spot trades where I have more flexibility. But for futures, CMP gives me the control I need to stay sane and focused.
Trading is all about staying sharp and not letting the market run you over. CMP lets me manage my trades in real time without overloading myself. In any case, I’m just sharing with you guys my personal preference which aligns better with my lifestyle and trading strategies.
What’s your style—CMP or limit orders? Let me know!
#tradesmart #limitorders #success #growth