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OCO, Trailing Stop, Special orders

69 views· 4:07· Jul 1, 2024

About This Video

In this video I break down “special” order types that a lot of newer traders hear about but don’t really understand until they get burned by them: OCO orders, trailing stops, and a few common variations you’ll see in your broker/platform. The whole point here is execution—how you actually get in and out without turning your trade into a guessing game. I walk through what these orders are supposed to do, how traders typically try to use them for risk management, and where the hidden gotchas show up in real day trading conditions. I also talk about why you can’t blindly trust automation. An OCO can keep you from double-filling and can structure your bracket, but only if you understand how your broker handles routing, partial fills, and cancellations. Trailing stops sound “smart,” but they can be a fast way to donate shares in choppy price action if you trail too tight or don’t respect volatility. My takeaway is simple: use these tools intentionally, test them in your platform, and build rules around when you’ll use them—because your order type is part of your edge, not an afterthought.

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