I am of the opinion that the reason you want to get on with this is trading for success, right? If yes then let me show you how to get started in 2019.
So, today, I want to show us how to NOT only use stop loss & trade on Binance, I will go ahead to show you how to use limit order, market and Stop-Limit Order to win against the market.
- 1 GETTING STARTED: LIMIT ORDER, STOP LOSS & TRADING ON BINANCE
- 1.1 THE BASICS OF LIMIT ORDER, MARKET ORDER, STOP LOSS & TRADING ON BINANCE
GETTING STARTED: LIMIT ORDER, STOP LOSS & TRADING ON BINANCE
As stated, we use Binance to trade because they charge the lowest in terms of trading fees, and if you want, you can use the BNB coin which means you will be charged lesser.
Also, it has sections for both beginners and advanced enthusiasts, and most importantly, you can find most of the altcoins you want to trade against or for.
In case you haven’t gotten your account ready, hit this link and get a new 2019 account. Verify it, and come back and see how to trade like a pro using technical options provided.
You will need to Buy Bitcoin or ETH before you transfer it to your Binance account for trading. Since Binance does not allow a direct-fiat transaction, places like Coinbase, Changelly and Luno will help you out.
THE BASICS OF LIMIT ORDER, MARKET ORDER, STOP LOSS & TRADING ON BINANCE
I am sure that you will get this if you give it an undivided attention. In case you do not get it the first time, go through it 3 more times for proper digestion.
We are using MITH altcoin in this tutorial.
USING THE LIMIT ORDER
#1. Buy Operation
By default, BUY operations means, place a BUY order with a BUY PRICE for a defined amount of coin when the UNITS is reached.
For an example. If I place a BUY operation to buy MITH.
What I need to do is enter the amount of BTC I want to use and buy MITH which currently it’s at 0.00001553.
If I reduce the price to 0.00001547, what will happen is that MITH will be bought when the market price goes down to 0.00001547.
#2. Volume Segmentations
On Binance, we have 4 market volume segmentations: 25%, 50%, 75%, and 100%.
If you decide to use 25% of your BTC and BUY the altcoin – MITH, what you need to do is click on any of the segmentations and the price will automatically be shown beneath.
#3. The Total Price Of BTC Per Trade?
You do not need to worry about how to calculate 0.00001547 MITH vs Bitcoin. Why? The price will be shown below for you to see.
#4. Sell Operation
The sell operation follows the same buy pattern. All you need to do is set a sell target.
Using the same price.
Since MITH is at 0.00001553. If I wish to make profits, I can increase my sell-out price target to 0.00001600 (or to a volume you are comfortable). Meaning that when the market price of MITH increases to 0.00001660 it will automatically trigger a sellout.
#5. Volume Segmentations
On Binance we have 4 market volume segmentations: 25%, 50%, 75%, and 100%.
If you decide to use 25% of your BTC and SELL the altcoin – MITH, what you need to do is click on any of them and the price will automatically be shown under the tab.
#6. The Total Buying Price of BTC Per Trade?
You do not need to worry about how to calculate 0.00001547 MITH vs Bitcoin. Why? The price will be shown below the tab for you to see.
A market order is buying and selling a coin at the CURRENT RATE. You sell at whatever the market price is.
Currently, MITH is 0.00001551.
If I choose to use the market order to BUY or SELL, I will simply transact (buy& sell) using the 0.00001551 MITH’s current market price. Hope you get it.
Difference Between Market Order & Market Order
You ONLY buy and sell at the current price
You can limit the price you want to buy & sell
You cannot adjust or modify a triggered price
You can set your preferred buy and sell targets.
The BTC price equivalent won’t be shown below.
The BTC equivalent will be shown beneath.
💡 The only reason you want to use the Market Order is when you want to close a trade ASAP.
Follow me closely or you can be confused.
If you are a pro trader you should be using Stop-Limit order for trading.
What happens here is that you set both LIMITS & CONDITIONS to buy & sell a Coin.
Take for instance, in Data Science or Programming, I can program thus: if …John + Bitcoin = ETH at $400, let ETH sell out when BTC goes down to $200.
Even though the above might not be feasible, the main idea is the fact that a CONDITION is set/possible.
Same with STOP-limit order.
A signal to buy MITH
Buy MITH at 1555 – 1575
Sell MITH at 1580
Stop Loss – 1530 (we are not using Stop loss yet)
Just in: [sociallocker id=4694] 110 Pro Trading Tools [/sociallocker]
BUY Operation Using Stop-Limit
What happens here is to set a favorable price for yourself lower than the market price with a condition.
For an example, if the market price of MITH is 1555, I can set a buy price at 1540 with a condition.
Wait, are you kidding me? I mean, will it get filled at 1540?
This is it.
There are those that had placed a sellout order 4 or 23 hours ago at 1540 MITH.
Apart from that, there are those that had entered MITH in a former trade probably AT 1400 and want to sell-out at 1540 or lower.
So, all-in-all, your coins will get filled – transacted I mean. Hope you get this gem (a premium secret has just been revealed).
Disadvantage – if your conditions are not met – you might miss out on the trade. 😎
Currently, MITH is 0.00001551. So what I will do is to set a condition as thus:
If MITH decreases from 0.00001551 to 0.00001549, buy MITH at 0.00001540 – more volume of MITH for me.
SELL Operation Using Stop-Limit
Just as buying at a lower price based on your condition, what you want to do is also set a favorable sell out price.
For an example.
Currently MITH is 0.00001551. What I will do is set a condition as thus:
If MITH increases from 0.00001551 to 0.00001555, SELL MITH at 0.00001600 – more volume of MITH for me in profits, right?
That is the gem and how to manipulate the market and buy at an advantage. Does this article worth sharing? Hit the share button, please.
Let me explain the more.
If you use the Limit Order you can limit the trade but not to set conditions. And if you’re using a market order, you can’t set limit or conditions. Confused? See below.
DIFFERENCES AMONG MARKET ORDER, LIMIT ORDER & STOP-LIMIT
You cannot set a limit or conditions to BUY & SELL
You can only set a LIMIT ORDER but not conditions
You can set both LIMIT and a CONDITION you want to BUY AND SELL.
You cannot set a limit Stop loss
You can only set a Limit Stop Loss Order
You can set LIMIT and CONDITIONS for a Stop-Loss
You can lose out if BUY ORDER is not met/reached.
If it were a SELL ORDER, it will remain open.
You can lose out if BUY LIMIT /CONDITIONS are not met/reached.
If it were a SELL CONDITION, it will remain open.
IF you want to avoid most of these and automate crypto trading use CB tool.
WHY DO WE USE STOP-LOSS ORDERS?
Stop-loss means you want to limit/stop your losses in case a trade is against you. You are simply using it in case all things are not equal, right?
Still using MITH.
If I had bought MITH at 0.00001553. In case I do not want to lose out if the trade goes against me, meaning, MITH can go down to 0.00001400.
To avoid the havoc, what I need to do is go to my Sell-Limit or Stop-Limit Order (with conditions) and enter the stop-loss price I want to sell out MITH to avoid more losses.
A signal to buy MITH
Buy MITH at 1555 – 1575
Sell MITH at 1580
Stop Loss – 1530.
After buying MITH at a favorable price, say, 1555, what I need to do now is go on to set a Stop-loss at 1530 or 1535.
Using LIMIT ORDER for a Stop Loss
Using a Limit Order means is that if MITH successfully goes down to 1535, I can only close my trade at 1535 having set it at that target. The same price.
1535 = 1535
Using STOP-LIMIT ORDER for a Stop Loss
Using Stop-Limit means that if MITH goes down to 1535, I can sell MITH at 1550…See the advantage here?
So, instead of selling at 1530 at a greater loss or the same price, you are simply set a condition to sell it off at 1550 (higher) provided it goes down to 1535…
1535 =1550 (still at profit a bit).
Read the above again to get it.
What happens if the MITH goes up from 1550 to 1560 and above?
Good news then,
Both the Limit Order & Stop-Limit condition won’t be triggered. Meaning that your trade will be open for you to set a better sell out price.
What does that tell you?
It is time to use a Price Alert tool to cut it up on top.
This is what I mean. Since you cannot set both SELL LIMIT & STOP LOSS at the same time, 😥
:a 😥 Use Stop-Loss to prevent losses (if the trade goes against you – at the bottom) and,
😎 Use a crypto Alert tool in order not to miss out of a potential sell alert if MITH goes up to 1580+ (if the trade is for you – on top).
Do you want to know the exact Point to set Stop loss as used by professionals? It is a premium tutorial, so, you need a Stop-Limit – conditions to see it. Follow us for more.
Waoh, if you don’t still understand the science of limit order, stop loss & trading on Binance in 2019, then, I will knock myself up because you have failed to read it again and again.
Let me know if you have any questions.