Trade The Journey

Trade The Journey

Placing my first Limit ORDER

When first starting, I like most was eager to place my first trade. I believed that litecoin had the ability to maybe surpass Bitcoin one day. This intuition is based on nothing more than a gut feeling and a little knowledge about cryptocurrency. I still have that feeling.

For a while, Litecoin found it hard to break through any resistance and traded between $20-$30 for months. I brought in towards the low point and am now averaging around $35 for the litecoin I own. Keep in mind that I am averaging the cost out.

Litecoin is constantly trading 24 hrs a day and is extremely volatile. Watch the charts. Understanding how the price moves can benefit you in determining entry and exit points. This is a broad statement and there is actually a lot involved in determining entry and exit points.

I won’t get into the mechanics of Litecoin. I feel you should determine the best investments for yourself.

They say that it’s the little details that determine the success of the deal, its the same with the market. I thought that the correct and best price was whatever price the trade was placed. The deepest I thought about the price was how much.

HARSH LESSON:

There’s a bidding war going on to determine the absolute best price to make the transaction. But that doesn’t mean someone on the other end is going to let you know that the best price is not the right price.

No one in the market has your best interest at heart and no one wants you to get the best/correct price for the stock. Because if you get a great price that means someone either sold or brought at a bad price.


The bid price represents the maximum price that a buyer is willing to pay for a security. The ask price represents the minimum price that a seller is willing to receive. A trade or transaction occurs after the buyer and seller agree on a price for the security. – Investopedia

A limit order is one of the tools that the experienced traders use to set the maximum or minimum price they are willing to buy or sell. I placed my first limit order on Litecoin to purchase a dip when the opportunity presented itself.

This is one of the reasons I prefer candlestick charts. You can visually see the high, low, open and close at different time frames. Along with volume, candlestick charts give a good idea of peoples sentiment toward the stock.

From the SEC:

“A limit order is an order to buy or sell a stock at a specific price or better.  A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher.  A limit order is not guaranteed to execute.  A limit order can only be filled if the stock’s market price reaches the limit price.  While limit orders do not guarantee execution, they help ensure that an investor does not pay more than a pre-determined price for a stock. “

The limit worked. Purchased litecoin at the low of the day. The best part is that it executed without further assistance from me.

Learning about the limit order tool for entering and exiting orders has been quite helpful. Keep in mind that your orders may never be filled if it doesn’t reach the limit order you placed. Determining the proper price to place a limit order is the hard part.

As I learn more, I’ll share more. As I share more, I am sure that I’ll be corrected more. I look forward to this because this is the real learning process.

Thoughts? Corrections?

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