Types of Orders During Trading 📚
One aspect I can recommend every trader to include in their trade journals is the type of buy & sell orders you use.
Do you always set limit orders? Or simply market buy & sell everything? Maybe you use TWAP orders or scale in and out using dozens of orders.
If you got a nice sample size on your trading results, you will find that one or the other generally makes you a lot more money depending on your trading style.
Personally, I find that when I market order in/out, it means I'm generally impatient and could have gotten a better entry or exit the majority of the time. Key to also note what happens after you do what you do, so you can accurately track if a certain action was indeed the correct one.
When market orders do work for me are when the I react to news quickly and need to get my buys or sells in fast. When speed is of the essence, limit orders generally won't cut it.
Also good to note the big difference in fees between limit & market orders which will definitely have a longer term impact on your final PnL result.
