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the best order type for stop loss for day trading

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As a day trader, we want to exit a losing trade ( position ) as quick as possible and in the meantime do not want to have unpleasant slippage.

When using a stop market order, it gets executed fast with no doubt; but it can be filled at any price. sometimes with a surprise ( big slippage );

When using a stop limit order, we have protection on the price ( with the limit set ), but it may never get filled if stocks are volatile and moving fast.

with stop limit order, eventually, we may still end up facing big loss due to unable to get orders filled quickly.

With all that said, what is the best order type ( other than the above said two types ) for a stop loss order for day traders?

Can anyone suggest one.


Edited by GoldWTcal

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Thanks, Peter.

I read the book written by Andrew Aziz , titled " Advanced Techniques in Day Trading". Where he wrote:  " market makers and many professional traders make a good living from filling market orders.....I discourage traders from placing market orders at any time....... this is why I always  avoid using market orders...."

Honestly, I was wondering that, the author never use market orders for his stop loss? for a day trader,  when facing the volatile and moving fast stock prices, we need to exit our losing trades lightning fast, aren't we?



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Sorry, I don't quite get it.

Kindly, can you share your experience - when you need to exit a losing trade for a very volatile & fast moving price stock( I am talking about day trading ),

which of the following would you use:

1) a stop market order ( hard stop )

2) a stop limit order ( hard stop )

3) a mentally set stop market order ( manually press market order )

4) a mentally set stop limit order ( manually press limit order )


to me, a market order is a market order, regardless it is a hard stop or mentally set stop, a market order will have slippage -sometimes a surprise.

Andrew ( the author ) never uses any sort of market orders  (either hard stop or mentally set )? that is the question. 

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